New Delhi, Jan 8 (IANS): The board of directors of Bajaj Auto has approved a Rs 4,000 crore share buyback at a price of Rs 10,000 a share which is at a huge premium of 43 per cent to the last closing price.

Bajaj Auto share closed at Rs 6,985 on Monday, up by 0.25 per cent.

Bajaj Auto said under the buyback issue it will be buying 40 lakh shares via tender route, representing 1.41 per cent of Bajaj Auto's outstanding shares.

In terms of Regulation 5 (via) of the Buyback Regulations, the Board / Buyback committee may, till one working day prior to the record date, increase the Buyback price and decrease the number of Equity Shares proposed to be bought back, such that there is no change in the Buyback Size.

The Board has constituted a Buyback Committee and has delegated the power to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient or proper in connection with the Buyback.

The Buyback is subject to approval of the shareholders by means of a special resolution through a postal ballot.

The public announcement and letter of offer setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations.