Bajaj Auto (BAJAJ-AUTO) has announced a buyback of equity shares aggregating up to Rs. 4,000 crores through the tender market buyback route at Rs. 10,000 per share.
To participate in the buyback, shareholders must have purchased the shares on or before February 28, 2024. The ex-date for eligibility is February 29, 2024.
When will the buyback open?
BAJAJ-AUTO buyback is open from March 6, 2024, and will close on March 13, 2024.
Buyback Schedule
| Record Date | February 29, 2024 |
| Buyback Opening Date | March 6, 2024 |
| Buyback Closing Date | March 13, 2024 |
| Buyback Price | Rs. 10,000 per share. |
| Credit of payment for accepted shares/credit of unaccepted shares to demat account. | March 20, 2024 |
You can keep track of all the latest Buybacks, Takeovers, and Delistings on Bulletin.
When should I have bought the shares to be eligible for the buyback?
You need to have purchased the shares on or before February 28, 2024, to participate in the buyback. The ex-date for eligibility was February 29, 2024.
What are the categories in which I can tender shares in buyback?
The eligibility for tendering shares in the buyback is determined based on two categories: Retail and General. Your eligibility category will be determined by the value of shares held in your Demat account as of the end of the day on February 29, 2024 (record date).
Shareholders holding shares valued at Rs. 200,000 or less will be categorized as Retail Category. Those holding shares valued above Rs. 200,000 will fall under the General category.
| Entitlement Ratio | |
|---|---|
| Retail or Category | 7 shares for every 27 shares held on record date. |
| General Category | 1 share for every 82 shares held on the record date. |
What is a tender market offer?
Companies have the option to conduct buybacks through two methods: Tender offer and open market offer.
Tender offer: The company makes an offer to buy back its shares at a particular price (offer price) at which the shareholders can tender, i.e., sell their shares.
Open-market offer: The company can buy back its shares by actively buying from sellers on the exchange. The buyback period is mentioned in the buyback offer, and it can last for months to ensure that there is no significant price movement due to the buying activity.
How do I offer shares in tender market buyback?
In an open market buyback, the company actively purchases shares on stock exchanges, while in a tender offer, shareholders can offer shares directly to the company.
Bajaj Auto’s buyback is conducted through a tender offer, allowing shareholders to tender their shares during this period via Console.
You can find detailed instructions on the process here.
Will I be eligible for the buyback if I’ve pledged shares of BAJAJ-AUTO?
Yes, even if the shares are pledged, you are eligible for all corporate action benefits. However, you will have to unpledge the shares before tendering them in the buyback. Here’s how to unpledge the shares.
Do I need to submit DDPI/POA to tender shares in buyback?
DDPI/POA is not needed to tender shares in the buyback. You can apply for buyback by authorizing CDSL TPIN and OTP. Do check out: What is the CDSL TPIN and how do I use it to sell my stock holdings?
I sold BAJAJ-AUTO shares after the record date, can I still take part in the buyback?
Yes, since you held the shares on the record date, you are eligible. You can buy the shares back and tender them in the buyback.
Can I tender more shares than I’m entitled to?
If you tender more shares than your entitlement, then whether these additional shares will be accepted for buyback or not will solely depend on the acceptance ratio decided by the company. The shares that are not accepted will be credited back to your demat account by the RTA.
How does the taxation work for tender market buyback?
The company buying back the shares in a tender offer or open-market offer pays all taxes on the buyback offer. Buyback transactions are shown separately in the Console tax P&L, and there won’t be any additional tax liability in such a case.
