Bajaj Auto board defers share buyback plan

Bajaj Auto reported lower-than-expected sales data for May 2022 (Representative image)

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26 Aug, 2025 12:21

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The board of Bajaj Auto, which held a meeting on June 14, decided to defer the share buyback plan which was brought before it for consideration.

The company, in a regulatory filing, said it will not move ahead with the proposed plan as of now as it requires "further deliberations".

"We wish to inform that the Board of Directors of the company at its meeting held today i.e. 14 June 2022, has decided that further deliberations are required in order to take a decision on the proposal of buyback, and accordingly deferred the matter," it said.

Bajaj Auto's stock dropped to Rs 3,641.05 per share at the BSE, the lowest in 19 months, as investors pared bets after the company deferred the buyback

If the board would have approved the proposal, this would have been the first share buyback to be made by the two-wheeler major in the last 22 years.

The last instance, when the company's board had cleared such a proposal, dates back to the year 2000, when 1.8 crore equity shares were bought back at Rs 400 a piece.

Bajaj Auto, notably, reported lower-than-expected sales data for May. It clocked a total sales of 2.75 lakh units during the month, which was below Nomura India Securities’ estimate of 3.12 lakh.

Sales volumes in May grew merely 1 percent on a year-on-year basis and were down by more than 34 percent from the pre-pandemic levels - as recorded in May 2019.

The muted sales performance was led by a weak month for exports for the company. Two-wheeler exports slumped 15 percent on-year to 1.53 lakh units, while three-wheeler exports fell 67 percent to 10,163 on-year in May.

Overall exports during May plummeted 22 percent on a year-on-year basis for Bajaj Auto, while domestic sales rose 85 percent.