Two-wheeler major Bajaj Auto has officially submitted to BSE and NSE the shareholder and board resolutions approving its biggest-ever share buyback worth ₹5,633 crore. The company has set June 24, 2026 as the record date to determine eligible shareholders for this landmark program. Shares demonstrated robust market performance on Monday, rising as much as 2.52% to ₹26.49 on NSE ahead of the record date. The stock opened at ₹26.51 compared to the previous close of ₹25.84 on Friday, touching an intraday high of ₹26.60 on June 22. The buyback will be conducted through the tender offer route on a proportionate basis using the stock exchange mechanism prescribed under SEBI's Buyback Regulations, 2018. The buyback price carries a premium of around 25.76% and 25.74% over the closing price on April 29, 2026. As per The Economic Times, investors must purchase shares at least one trading day before the record date to ensure they are credited to demat accounts by the record date, making June 23 (Tuesday) the last day to buy shares for buyback participation.
According to latest reports, Bajaj Auto's shares recently hit a 52-week high of ₹8,344, reflecting a 2.72% increase from the previous closing price. This surge is attributed to robust financial performance, including a 37% year-on-year increase in net profit for Q3, amounting to ₹2,042 crore. Revenue also saw significant 30% YoY growth, reaching ₹12,114 crore, exceeding analyst expectations. The growth is attributed to strong demand and strategic product launches, particularly in the 125cc+ segment, which aims to capture a larger market share in the competitive automotive landscape. In FY26, the company reported consolidated net profit of ₹10,744 crore, a rise of 47% YoY, while revenue from operations rose 23% YoY to ₹62,905 crore, aided by robust sales growth especially in the export market. The company currently has a market capitalisation of more than ₹2.85 lakh crore and has delivered nearly 122% returns over three years and more than 142% in five years.
The buyback offers significant opportunities for retail investors, with 15% of the total offer size reserved for retail shareholders, equivalent to 7.04 lakh shares or ₹845 crore. To be eligible for buyback under retail category, investors can hold a maximum of 16 shares (16*12,000 = ₹1.92 lakh) based on the buyback price of ₹12,000 per share. The retail category is determined based on current market value, with total holding value up to ₹2 lakh considered retail shareholding. As per The Economic Times, the research analysts at Anand Rathi highlighted that individual investors qualifying above criteria held approximately 64.16 lakh shares, implying an acceptance ratio of around 11% for retail investors. However, historically, buybacks where promoters abstain from participation tend to witness relatively better acceptance ratios for retail investors compared to institutional categories. The acceptance ratio for the current buyback is expected to range from 10% to 25%, with the difference between buyback price and current market price being ₹1,924 per share as of June 19 closing. The non-participation of promoters materially improves attractiveness for retail investors under the tender offer mechanism.
A significant development in the buyback structure is the non-participation of promoters and promoter group, who collectively hold approximately 55.01% of the company's equity. Bajaj Holdings & Investment Ltd. is the single largest shareholder with a 34.19% stake. Their non-participation means the entitlement ratio for public shareholders will be proportionately higher, as the effective competition for tendering shares reduces significantly. The buyback size is relatively small at only 1.68% of the outstanding equity capital, with the retail reservation standing at 7.04 lakh shares against a retail shareholding base of approximately 1.57 crore shares. This translates into a theoretical entitlement ratio of about 4.5-5%, implying that investors should not expect a high acceptance ratio. However, small investors who can acquire shares within the ₹2 lakh eligibility limit before the record date may find participation worthwhile as a low-risk special situation opportunity. The buyback is also a strong signal of management confidence and surplus cash generation, reflecting the company's strong balance sheet and healthy free cash flow generation.
The buyback will be funded from free reserves and the securities premium account, with borrowed funds from banks or financial institutions not being used. The company must complete the buyback within one year of the shareholders' special resolution. As per The Hindu BusinessLine, the company's aggregate paid-up equity capital and free reserves stood at ₹33,264.48 crore on a standalone basis and ₹36,128.51 crore on a consolidated basis as of March 31, 2026. Statutory auditors S R B C & Co LLP issued an unmodified report confirming the buyback amount falls within permissible limits under the Companies Act, 2013. The buyback represents the company's largest share repurchase program, following a ₹4,000 crore buyback of shares in 2024 for ₹10,000 per share. The buyback represents a strong signal of management confidence and efficient capital allocation approach, with the company demonstrating healthy free cash flow generation and confidence in long-term business fundamentals.
