Bajaj Auto topples M&M as third most valuable auto company in India
New Delhi: The Bajaj Auto stock climbed over six per cent on Tuesday to reach its 52-week high level as the company announced a share buyback worth Rs4,000 crore. The stock jumped 6.21 per cent to reach its 52-week high of Rs7,420 on the BSE.
At the NSE, it climbed 5.94 per cent to Rs7,399 -- its 52-week high. The company’s market valuation went past Rs2 lakh crore mark helped by a rally in the stock price. Its market capitalisation (mcap) stood at Rs2,01,506.47 crore.
The company’s board on Monday approved a proposal for buyback of up to 40,00,000 shares of face value of Rs10 each at a price of Rs10,000 per share for a total consideration not exceeding Rs4,000 crore.
The buyback is subject to approval of the shareholders. Share buyback is a practice where companies decide to purchase their own shares from their existing shareholders either through a tender offer or through open market.
