Bajaj Consumer Care shares fall 8% on weak Q4 show, company to buyback 57.41 lakh shares

Bajaj Consumer Care shares have gained around 40 percent in one year.

Bajaj Consumer Care shares tanked eight percent on May 9, after it posted a 12 percent fall in consolidated net profit for the quarter ended March.

The small-cap FMCG player's net profit came in at Rs 35.58 crore, compared to Rs 40.46 crore for the same quarter in the year-ago period. The total revenue fell 3.8 percent on-year to Rs 239.96 crore for the quarter, from Rs 249.42 crore in the March quarter of FY23.

At 1.15 pm, shares of Bajaj Consumer Care were quoting Rs 241.75 on the NSE, lower by 7.1 percent compared to the previous session's close.

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On May 8, Bajaj Consumer Care's board of directors gave the green light to the company's plan to buyback fully paid up equity shares, amounting to 57.41 lakh shares, at a price of Rs 290 per share.

The total payout for this buyback is expected to come in at Rs 166.49 crore, according to an exchange filing. The total buyback size represents 4.02 percent of the total paid-up equity capital in the company.

The buyback will be completed through a tender offer route on a proportionate basis using the mechanism for acquisition of shares through the stock exchange, said the company.

The buyback offer comes at a premium of 11 percent compared to May 8's closing price of Rs 261.40 on the NSE.

"The buyback offer size represents 19.25 percent and 20 percent of the aggregate of the company’s fully paid-up equity capital and free reserves based on both the latest standalone and consolidated audited financial statements of the company, respectively, for the financial year ended on March 31, 2024, which is less than 25 percent of the aggregate of the total paid-up capital and free reserves,'' said Bajaj Consumer Care.

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