Bajaj Consumer Care has created a stir in the market by announcing a strategic Share Buyback plan along with a major restructuring initiative. This development comes at a time when the company’s stock had been under pressure for over a year. By offering a buyback price of ₹290 per share, Bajaj aims to reward loyal investors and boost long-term shareholder value.
The move, announced alongside the merger of its fully-owned subsidiary, Vishal Personal Care, signals a renewed focus on operational efficiency and market consolidation.
🔍 What’s in the Share Buyback Offer?
The Bajaj Consumer Share Buyback plan is extensive and well-structured. The company will repurchase up to 6,434,482 shares, representing 4.69% of its total equity, amounting to ₹186.60 crore. The offer will be conducted through the Tender Offer Route, ensuring equal participation opportunities for all shareholders.
💡 Interestingly, the promoter group will not participate in this buyback, underlining their long-term commitment to the company.
Here’s the shareholder breakdown:
| Shareholder Category | No. of Shares | Holding % |
|---|---|---|
| Promoter Group | 5.61 crore | 40.95% |
| Foreign Investors | 1.70 crore | 12.46% |
| Mutual Funds/Banks | 2.23 crore | 16.32% |
| Public & Institutions | 4.15 crore | 30.27% |
| Total | 13.70 crore | 100% |
🔄 Strategic Restructuring: Vishal Personal Care Merger
Alongside the Share Buyback, Bajaj Consumer is also implementing a business restructuring plan. Its 100% subsidiary, Vishal Personal Care, will be merged into the parent company.
In FY25, this unit recorded revenue of ₹525.16 crore – nearly 5.6% of Bajaj Consumer’s total income.
🎯 Benefits of the Merger
- Operational synergy and streamlined production
- Cost optimization and better planning
- Enhanced use of resources
- Improved supervision and governance
- Long-term value creation for investors
Even after the merger, Vishal Personal Care will remain a wholly owned unit. No new shares will be issued, and no cash payment will be made for this merger.
🧠 Expert Management in Place
To ensure a smooth process, Bajaj Consumer has appointed Anand Rathi Advisors as the buyback manager. A Buyback Committee has been formed, and Vivek Mishra, Company Secretary, has been designated the Compliance Officer.
This level of detailed planning reflects the company’s intent to build investor trust and enhance market confidence.
📊 Market Reactions & Outlook
Despite a prolonged underperformance in its stock, Bajaj Consumer’s recent actions show a commitment to reviving growth and investor sentiment. Share buybacks generally signal confidence in the company’s fundamentals and often lead to a rise in share prices over time.
🏁 Final Thoughts: Is Bajaj Consumer Setting a New Trend?
With its ₹290 share buyback and strategic merger, Bajaj Consumer is not just restructuring – it’s realigning its future. These moves reflect a strong message: the company is serious about maximizing efficiency and creating long-term value.
As the tender offer unfolds, investors and analysts will keep a close eye on how the stock reacts. But one thing is clear – Bajaj Consumer is back in action and playing to win.
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