Bajaj Auto amends dividend distribution policy to manage surplus funds

The Pune-based company, at the end of fiscal 2020, had cash and cash equivalent of Rs 13,972 crore.

Bajaj Auto has amended its dividend distribution policy as it seeks to reward its shareholders and boost return ratios.
 
The amended policy will also consider the surplus the company has when calculating the dividend payout as a percentage of profits after tax, the Pune-based firm said in a stock exchange filing on Thursday.
 
“Subject to the caveats given in the policy, the board shall endeavour to arrive at a dividend pay-out as a percentage of profits after tax on the company’s standalone financials, taking into account the surplus funds available with the firm,” it said in the filing.