Bajaj Auto Limited

A significant return of capital to shareholders is underway at Bajaj Auto, as investors recently approved a substantial ₹5,633 crore share buyback, representing approximately 1.68% of the company’s equity. The buyback, executed via a tender offer with a portion reserved for small shareholders, will be funded from free reserves, and notably, promoters have opted not to participate. Simultaneously, the company is navigating a ransomware cyber security incident, though initial reports suggest mitigation efforts have been successful. While the cyber incident introduces a potential operational risk, the large-scale buyback signals management’s confidence in the company’s financial health and provides a potential boost to earnings per share, potentially supporting the stock in the near term.