Bajaj Auto Shares Down Over 2% as Ransomware Attack Triggers Selloff

Mumbai, June 24: Bajaj Auto share price declined as much as 2.6% on Wednesday after the company disclosed that it had been hit by a ransomware attack affecting its systems and those of its wholly owned subsidiary, Bajaj Auto Technology Ltd (BATL). 

The stock came under immediate pressure in early trade as investors reacted to the cybersecurity breach, which introduced a fresh operational risk concern for one of India’s leading two-wheeler manufacturers. The decline reflected heightened sensitivity in the market toward digital infrastructure vulnerabilities, particularly in large corporates with extensive enterprise systems and connected operations. 

The weakness came as Nifty Auto index declined 0.4%. As of writing the stock was down 2.6% at Rs 9,767. 

Investor Focus Turns to Operational Risk 

Bajaj Auto confirmed that it detected the ransomware incident on June 23 and promptly initiated containment and response measures. 

The stock slid as investors worried after cyberattack. Source: NSE  

Market participants said the incident has shifted near-term focus toward operational resilience and cybersecurity preparedness, even though the financial impact remains unclear at this stage. 

Cyberattacks on large industrial companies are increasingly viewed as material risks due to the growing integration of manufacturing, supply chain and enterprise IT systems. Even when such incidents are contained, they can lead to short-term volatility as investors reassess risk exposure and potential operational disruptions. 

Analysts note that cybersecurity risks are becoming a more prominent consideration for large-cap manufacturing and auto firms as digitalisation deepens across operations. 

Eyes on System Recovery and Updates 

Going forward, investor attention will remain on further disclosures regarding the scope of the ransomware attack, the status of system recovery and whether any data or operational disruptions have occurred. 

While the company has emphasised that measures were swiftly implemented, markets are likely to remain cautious until greater clarity emerges on the full impact and timeline for complete restoration of systems. 

Buyback 

Today is the record date for Bajaj Auto’s ₹5,632-crore share buyback, a key cutoff that determines which shareholders are eligible to participate in the company’s large capital return programme. Investors who held Bajaj Auto shares at the close of trading on Tuesday will qualify for the buyback.  

Under the proposal, Bajaj Auto will repurchase up to 46.94 lakh equity shares at a fixed price of ₹12,000 per share, implying a total outlay of up to ₹5,632 crore and a significant premium to prevailing market levels. 

The programme is aimed at returning surplus cash to shareholders and optimising the company’s capital structure, while also signalling management’s confidence in its balance sheet strength and cash-generating ability. With the record date now in place, market attention shifts to acceptance ratios and near-term stock behaviour around the buyback window. 

Source

•  https://www.nseindia.com/get-quote/equity/BAJAJ-AUTO/Bajaj-Auto-Limited