Bajaj Auto defers share buyback, Auto News, ET Auto
Bajaj Auto was the biggest loser on both the Nifty and the Sensex on Tuesday after the maker of Pulsar bikes announced the deferral of its share buyback proposal, saying it needed “further deliberation.”
The stock lost as much as 7% intraday on both the Bombay Stock Exchange and the National Stock Exchange before recovering marginally and ending the day’s trade 5.06% lower at INR 3,684 on the Bombay Stock Exchange.
“We wish to inform that the board…has decided that further deliberations are required in order to take a decision on the proposal of buyback, and accordingly deferred the matter,” Bajaj Auto said in a customary filing with the exchanges.
Separately, the company also announced the resignation of Shekhar Bajaj from his position of non-executive director from the company from June 30 due to health reasons. Shekhar Bajaj is the chairman and managing director of Bajaj Electricals since 1994.
After more than two decades, the company had announced plans to buy back shares on June 9. Over the past three months, the stock has rallied 12%.