Bajaj Consumer Care Announces Buyback 57.41 lakh Shares at 11% Premium

On Wednesday, May 8, Bajaj Consumer Care published the results of its January–March quarter for the fiscal year 2023–24 (Q4FY24) and unveiled a new buyback plan that aims to repurchase its own shares at a premium of 11% over today’s closing price of ₹260. The board of the smallcap fast-moving consumer goods (FMCG) company authorized the plan for a buyback that would repurchase up to 57.41 lakh fully paid-up equity shares at a cost of ₹290 each, totalling up to ₹166.49 crore. The specified amount must be paid in cash for this.

Up to 57,41,000 equity shares of the Bajaj-Group firm, or 4.02 percent of all equity shares, are approved for repurchase. These shares will be repurchased from equity shareholders as of the record date. “The buyback offer size represents less than 25 percent of the total paid-up capital and free reserves, representing 19.25 percent and 20 percent, respectively, 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, for the financial year ended on March 31, 2024,” Bajaj Consumer Care stated in a regulatory filing to the stock exchanges.

For the fourth quarter ending in March 2024, Bajaj Consumer Care saw a 12% decrease in consolidated net profit, amounting to ₹35.58 crore. In the same quarter of the previous fiscal year, Bajaj Consumer Care reported a consolidated net profit of ₹40.46 crore in its exchange filing.
The manufacturer of Bajaj Almond Hair Oil reported a consolidated total revenue from operations of ₹239.96 crore for the quarter under review, compared to ₹249.42 crore for the same time last year. In the fourth quarter of last year, the company’s overall expenses decreased to ₹208.08 crore from ₹210.33 crore.

The company had previously declared earlier in 2022 that it would be repurchasing ₹80.89 crore through the open market at a cost of ₹240 per share. Investors have received returns on their Bajaj Consumer Care shares of 12.78 percent in the last month and 49.05 percent in the last year. This contrasted with the Nifty50’s average returns over the previous month, which were -0.94%, and over the previous year, which were 23.45%. Before the Q4FY24 results were revealed, Bajaj Consumer Care shares ended the day 1.8% higher on the BSE at ₹260.55 a share. By closing, the 30-share Sensex benchmark had dropped almost 50 points to 73,466.39.