As per analysts at Nuvama, the acceptance ratio of the share buyback could be in the range of 4-10 percent; the buyback is likely to be completed within the next 15 days
Shares of Bajaj Auto fell around 4 percent in early trade on February 29 as they traded ex-buyback. The company’s board had approved a Rs 4,000-crore share buyback in January, the record date for which was on February 28.
At 11.18 am, shares of Bajaj Auto were trading at Rs 7,982.15 on the NSE.
The company had announced buyback 40 lakh shares, or 1.4 percent stake, at a price of Rs 10,000 per share. The floor price of the buyback sits at a premium of 18 percent to the current market price. The buyback will happen through the tender offer route.
However, given the smaller size of buyback and higher retail shares, acceptance ratio is expected to be lower. As per analysts at Nuvama, the acceptance ratio could come in the range of 4-10 percent. Those with investments of up to Rs 2 lakh are treated as retail investors.