Bajaj Consumer Care announces buyback at Rs 240 per share

Smallcap FMCG company Bajaj Consumer Care on Friday announced Rs 80.89 crore buyback at a price of Rs 240 per share through the open market route. The decision was taken at a board meeting of the company held in Mumbai.

"The indicative maximum number of equity shares proposed to be bought back at the maximum buyback size and maximum buyback price under the buyback would be 33,70,416 equity shares (representing approx. 2.28% which is less than 25% of the total number of equity shares in the paid-up equity capital of the company as of March 31, 2022)," the company said in a regulatory filing.

Bajaj Consumer said it will utilize at least 50% of the maximum buyback size (Rs 40.44 crore) and will purchase a minimum of 16,85,208 shares.

"The buyback offer size represents 9.66% and 10% of the aggregate of the company’s fully paid-up equity capital and free reserves as per the latest standalone and consolidated audited financial statements of the company, respectively, for the financial year ended March 31, 2022, which is not more than 10% of the aggregate of the total paid-up capital and free reserves of the company," it said.

The promoters of the company cannot participate in the buyback through open market as per the regulations.

The timeline of the buyback will be released later on.

The stock which has a market capitalisation of Rs 2,700 crore has rallied over 32% in the last 6 months. The smallcap was trading 3% higher at Rs 183.65 after the buyback announcement.