Shares of Bajaj Auto Ltd were trading 3 per cent lower in Wednesday's trade as the stock turned ex-date for its share buyback. The two-wheeler maker has announced a buyback of 46.94 lakh shares at Rs 12,000 apiece, aggregating Rs 5,633 crore, through the tender offer route.

On Wednesday, the scrip fell 2.56 per cent to hit a low of Rs 9,758.50 on BSE. The tender period for the buyback will begin next week on Wednesday, July 1, 2026, no later than four working days from the record date. The issue will remain open for five working days and close on Tuesday, July 7, 2026.

“The buyback price of Rs 12,000 per share represents a premium of nearly 19 per cent over the prevailing market price, offering an attractive exit avenue for shareholders whose shares are accepted in the tender process. However, the overall buyback size remains relatively small, with the company proposing to repurchase only 46.94 lakh shares, equivalent to 1.68 per cent of its outstanding equity capital,” Saurabh Jain, Head of Fundamental Research at SMC Global Securities said on Tuesday.

This was Bajaj Auto's largest share buyback after a Rs 4,000 crore issue in 2024 at Rs 10,000 a share.   

Jain of SMC Global said 15 per cent of the buyback is reserved for retail shareholders, but the retail shareholder base is significantly larger than the reserved quota. "Based on the current shareholding pattern, the theoretical entitlement ratio works out to approximately 4.5–5 per cent, suggesting that acceptance may remain limited. Although actual acceptance ratios could be somewhat higher depending on participation levels and shareholder behavior, investors should not expect the exceptionally high acceptance rates witnessed in certain past buybacks," Jain said.

Eligible shareholders will receive the Letter of Offer along with a tender form showing their entitlement for participating in the buyback. Bajaj Auto said eligible shareholders may still participate and tender their shares in the buyback even if they do not receive the Letter of Offer and the tender form.

Bajaj Auto said promoters, members of the promoter group, and persons in control of the company have expressed their intention not to participate in the buyback. As a result, they will not be considered while computing the entitlement ratio. 

The shares proposed to be bought back will be divided into two categories, with shareholder entitlement in each category to be calculated separately. The first is the reserved category, comprising 15 per cent of the buyback, for small shareholders holding shares with a market value of not more than Rs 2,00,000 on the basis of the closing price. The second is the general category for all other eligible shareholders.

The entitlement for an eligible shareholder will be calculated on the basis of the number of shares held by that shareholder as on June 24 and the buyback ratio applicable to the relevant category.

Participation in the buyback is voluntary. Eligible shareholders may choose to participate in part or in full and receive cash for the equity shares accepted under the buyback. They may also choose not to participate and instead have a higher percentage shareholding after the buyback is completed, without making any additional investment.

Meanwhile, a host of companies such as Wipro, Zydus Lifesciences, Dhanuka Agritech, CyberTech Systems, Welspun Living, CMS Info Systems and Garware Technical recently turned ex-date for buybacks.