How to apply for Bajaj Auto Share Buyback?

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Retail investors can participate in Bajaj Auto share buyback on platform of their respective stock broker firms like Zerodha, Groww, etc. Bajaj Auto share buyback opened for participation from March 6, 2024 to March 13, 2024. For retail investors, the acceptance ratio is 7:27, which means, for every 27 shares held, seven would be bought back by , Bajaj Auto will repurchase minimum of 7 shares. They can buy back more than seven shares as well depending on how many shareholders apply in the buy back offer. The 7:27 acceptance ratio  translates to 25.9 per cent. Retail investors can tender any number of shares held in their portfolio held as on the record date.

Since, the record date was February 29, 2024, so, to be eligible for participation in the share repurchase offer, small shareholders must have held the shares on the required date in their portfolio. Moreover, even after they have successfully placed order, they are suggested not to sell shares until stocks in their demat account are booked for buyback. If their stocks are booked, then, they will get credit of money directly in their linked bank account.

Retail investors can participate directly from their broker’s platform. For example, if  they use Zeroda, then they can follow these steps and apply in the offer:

1. Open Zerodha’s Kite app

2. Click on portfolio. You can also go to Zerodha’s website ‘console.zerodha.com’ and go to portfolio section from there.

3. Click on corporate actions

4. Under Buyback tab, click on Bajaj Auto and then place order

5. Enter the quantity and click Submit.

Do you have to pay any charges for applying for buybacks:

Yes. Zerodha levies ₹20 + GST for processing buybacks orders. The fee needs to be paid even if you do not succeed in getting a buyback.

Other apps and platforms may have a different process and charges may also differ.

Bajaj Auto buyback price is Rs 10,000 per share. This means you can sell the stock at around 19 per cent premium to its Wednesday’s opening price of Rs 8,353 on the BSE. You have a chance to make profit of around Rs 1,600 on every share that you would tender in the offer considering Wednesday’s opening price.

Total buyback size is Rs 4,000 crore. The homegrown auto major will repurchase 40 lakh shares which is about 1.41 per cent of total outstanding shares.