Bajaj Auto Fixes June 24 Record Date for ₹5,632 Crore Share Buyback
Two-wheeler giant Bajaj Auto has officially set June 24 as the record date to determine shareholder eligibility for its largest-ever share buyback. This massive capital allocation move signals strong confidence in the company's cash reserves and future growth trajectory.
Details of the ₹5,632 Crore Buyback Program
In a recent exchange filing, Bajaj Auto confirmed that the buyback will be conducted through the tender route. The company intends to repurchase up to 46.94 lakh shares, which represents approximately 1.68% of its total paid-up share capital.
The repurchase price has been set at ₹12,000 per share, offering investors a significant premium of nearly 19.5% over the stock's previous closing price. This initiative follows a previous ₹4,000 crore buyback conducted in 2024 at ₹10,000 per share, highlighting the management's consistent strategy of returning value to shareholders through corporate actions.
Robust Financial Performance and Shareholding Context
The decision to initiate such a large-scale buyback is backed by exceptional quarterly performance. In Q4 FY26, Bajaj Auto reported its highest-ever quarterly profit of ₹2,746 crore, marking a substantial 34% jump compared to the ₹2,049 crore recorded in the same period last year. Revenue from operations also saw a 32% year-on-year rise, reaching ₹16,006 crore.
As of March 31, 2026, the company's shareholding pattern shows promoters holding a 55% stake, while institutional investors (banks, mutual funds, and insurance companies) hold 14.5%. Foreign investors account for nearly 10%, with the remaining 21% held by the general public and other corporates. The buyback is expected to subtly shift these proportions as shares are retired from the market.
Investor Returns: Buybacks and Dividends
Beyond the buyback, Bajaj Auto is rewarding its investors through significant dividend payouts. The company has announced a dividend of ₹150 per share (representing 1,500% of the face value) for the financial year ended March 31, 2026. While the record date for dividend eligibility was set for May 29, the actual payment is expected to be processed on or around July 24, 2026.
For long-term investors, Bajaj Auto has proven to be a wealth creator. The stock has delivered impressive returns of 117% over three years and 142% over a five-year period. Currently, the company maintains a massive market capitalization exceeding ₹2.82 lakh crore.
Key Takeaways
- Record Date & Pricing: June 24 is the official record date for the ₹5,632 crore buyback, with shares being repurchased at ₹12,000 each.
- Record Profits: The buyback follows a stellar Q4 FY26 where the company achieved a record profit of ₹2,746 crore, a 34% YoY increase.
- Dual Returns: Shareholders are benefiting from both the premium buyback offer and a substantial dividend of ₹150 per share.