Bajaj Auto shares closed nearly 2% higher on Tuesday, driven by a share buyback announcement worth Rs 4,000 crore. The company's market capitalization surpassed Rs 2 lakh crore.
New Delhi, Jan 9 (PTI) The stock of Bajaj Auto ended nearly 2 per cent higher on Tuesday as the company announced a share buyback worth Rs 4,000 crore.
The stock jumped 6.21 per cent to reach its 52-week high of Rs 7,420 per share during the day on the BSE. It later ended at Rs 7,093.75, a gain of 1.55 per cent.
On the NSE, it advanced 1.76 per cent to settle at Rs 7,107 apiece. During the day, it climbed 5.94 per cent to Rs 7,399 -- its 52-week high.
The company's market valuation went past the Rs 2 lakh crore mark during the day, helped by a rally in the stock price. Its market capitalisation (mcap) stood at Rs 2,00,880.64 crore.
On Monday, the company's board approved a proposal for buy back of up to 40,00,000 shares of face value of Rs 10 each at a price of Rs 10,000 per share for a total consideration not exceeding Rs 4,000 crore.
The buyback is subject to the 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 an open market.
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