New Delhi, July 2 -- Bajaj Auto's Rs.5,632.8-crore share buyback, which opened on July 1, comes with a significant change for investors. Shares accepted in the buyback will now be taxed under the new capital gains regime that took effect on April 1, 2026, replacing the deemed dividend framework that applied until March 31, 2026.

The company is buying back up to 46.94 lakh fully paid-up equity shares at Rs.12,000 apiece through the tender offer route, with the offer remaining open until July 7. While the buyback price offers a premium over the prevailing market price, investors should also understand the new tax rules, as they will determine how the buyback proceeds are taxed.

A share buyback is when a company repurchases its own shares ...