Bajaj’s share price rises amid 4000 shares buyback at 10,000

Hello Readers,

Bajaj Auto has announced the repurchase of 4000 crore shares at Rs 10,000 per share. This has led to a sharp uptick in Bajaj’s share price. An aspiring investor who listened to this immediately picked up his mobile to purchase the shares. Just before he is about to pay the money to purchase shares, he remembers the suggestions given by the experienced investors to learn and not make any emotional decisions, including happiness. The moment he remembered this, he found himself closing the application dedicated to selling shares and buying. However, the urge to make quick money never let him be in peace.

Bajaj’s share price has increased; it will further increase, says his mind. It urges him to purchase the share immediately, but before he can make a decision his intelligence comes to the playground. It asks questions of him. How much do you know about the share market? What do you know about the company? What is the face value? Why are they repurchasing the shares, What is the cost per share, What is the value percentage? What is the volume percentage? On the other hand, his mind is telling him that prices will increase every second and it may cross your affordability, so try to create the urge to purchase immediately.

The aspiring investor finally falls into the hands of his mind, just as any other aspiring investor does, and purchases the shares before they cross his affordability level. For the rest of the day, he is happy to enjoy the news of the increase in Bajaj’s share prices. The next morning, he rushes up to his phone to check the price of the shares. To his dismay, the price is neither growing nor falling; it has stagnated. His mind forced him to purchase escapes so that they could escape from his tantrums. When his intelligence comes to the rescue, he expresses his frustration about it, and his intelligence warns that it is not going to help him if he continues his tantrums.

Finally, he apologises for his intelligence and asks several key questions regarding Bajaj’s share Price

1. What is the face value of the share?
2. What is the buy-back price?
3. How many shares is the company buying back?
4. What percentage of volume, value, and paid-up equity share capital?
5. What is the proportion of investment holdings among different entities?
6. How has the market reacted to this Bajaj stock, especially?
7. What is the percentage of premium?

Oh wait, let me check the answers to these questions says the aspiring Investor, After a few minutes, he says

Bajaj’s share price Details

1. The face value is 10 rupees
2. The buyback price is 10,000 rupees per share
3. The company is going to repurchase 40 lakh shares
4. 1.44 and 16.63 are the volume, and value of shares and 14.49% is the paid-up equity share capital
5. Promoters of the company have 54.94% of the shareholding, the public has 21.18%, and foreign investors and mutual funds have 15 and 8.47% of the shareholding, respectively.
6. The Bajaj stock has reacted positively to the announcement
7. The percentage of Premium is 30

This is how you should have analysed the metrics before Investing. Now tell is there anything to analyse now you have to tell. The aspiring Investor says you have to tell me. The Intelligence replies in a firm tone ‘No’. The Aspiring Investor gets to know that his Intelligence is not going to budge and he begins checking for the details.

After researching he asks,

1. What did the veteran Investor Devan Choksey’s opinion on Bajaj’s share price rise?
2. Did the company re-purchase shares before this, If yes when and how much?

The mind replies

1. The Former Investor reacted positively to the announcement
2. In July 2022 the company bought back 2500 crore worth of shares at rupees 4600 per share.

Dear Readers,

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