Bajaj Consumer approves share buyback of up to 1.87 billion rupees

Bajaj Consumer approves share buyback of up to 1.87 billion rupees

Bajaj Consumer Care Ltd. has approved a share buyback program, marking the second consecutive year for the personal care company. The board meeting on Thursday, July 24, considered and approved a proposal for a buyback of up to ₹1,870 crore, which would reduce the number of outstanding shares and potentially enhance shareholder value.

The buyback is expected to be executed via the tender offer route, where shares are repurchased at a predetermined price. The previous buyback in July 2024 involved a tender offer worth ₹166.49 crore at a price of ₹290 per share. The current share price is trading below that level, indicating potential value for shareholders who wish to sell.

The buyback announcement comes amidst a declining trend in share buyback announcements since October last year, when new regulations were implemented. Under the revised rules, income from equity share buybacks is now taxed in the hands of shareholders, unlike earlier when the tax burden was on the company.

As of Wednesday, July 23, Bajaj Consumer Care shares closed 2% higher at ₹242.60 on BSE. The stock has gained 18% over the past month, demonstrating resilience despite the market volatility.

The company's decision to approve a share buyback reflects its confidence in its financial health and future growth prospects. This corporate action aims to return capital to shareholders and potentially increase the value of shares by reducing the number of outstanding shares.

For more details, please refer to the regulatory filings and the company's official announcements.

References:
[1] https://www.cnbctv18.com/market/bajaj-consumer-share-buyback-stock-falls-ahead-of-second-announcement-in-12-months-record-date-19642736.htm
[2] https://www.etnownews.com/markets/announcement-today-2nd-share-buyback-by-bajaj-group-company-details-article-152335220