Bajaj Auto buyback opens today; Should you tender shares? Here’s what analysts say

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₹8,515.55 apiece on the BSE. Bajaj Auto share buyback for raising up to ₹4,000 crore opened today, March 6, and will close on March 13. As per the share buyback scheme, Bajaj Auto will repurchase 40 lakh equity shares, amounting to 1.41% of total outstanding shares, through the tender route.

Bajaj Auto buyback price is set at ₹10,000 per share, which is more than 19% higher than its Tuesday’s closing price of ₹8,351.80 apiece. However, should stock market investors tender their shares in Bajaj Auto buyback? Let us check what analysts have to say. Analysts believe Bajaj Auto share buyback price of ₹10,000 is very attractive and short-term investors can tender their shares in the buyback program.

However, analysts have suggested long-term investors to hold Bajaj Auto shares. “Bajaj Auto is my top pick in the auto sector. Only short-term investors looking for quick gains can tender their shares in the buyback.

However, long-term investors should hold Bajaj Auto shares given the company’s strong prospects," said Ashwin Patil, Senior Research Analyst at LKP Securities. Patil believes the premiumization theme, rising sales of Chetak Electric Scooter and improving exports are key positives for Bajaj Auto that will drive the share price going ahead. Therefore, according to him, long-term investors should hold Bajaj Auto shares and not tender them in the share buyback due to the company’s strong fundamentals and growth outlook.