Buybacks Back in Focus: Bajaj Auto Announces ₹5,633 Cr Buyback

Bajaj Auto Buyback Details • Buyback size: ₹5,633 Cr • Buyback price: ₹12,000/share • Shares: Up to 46.94 lakh equity shares • Size: 1.68% of paid-up equity • Route: Tender Offer Why Buybacks Are Gaining Attention Again Regulatory Changes • Proposed Corporate Laws Amendment Bill 2026 may allow certain companies to conduct 2 buybacks in one financial year • Minimum gap proposed: 6 months • SEBI considering return of open market buybacks via stock exchange route Taxation Shift • Earlier: Buyback proceeds taxed as deemed dividend • Budget 2026 proposal: Tax as capital gains instead This improves tax efficiency and makes buybacks more attractive for investors. Companies in Buyback Focus • Bajaj Auto • Aurobindo Pharma • Wipro • Kajaria Ceramics • Cyient • Garware Technical Fibres Learning Outcome Buybacks are a capital allocation tool used by cash-rich companies to reward shareholders. Regulatory flexibility and favorable taxation can increase buyback activity across markets.