L&T buyback: ₹10,000 crore offer opens today. Should you tender your shares?
share buyback of engineering and infrastructure conglomerate Larsen & Toubro (L&T) opens today. Investors can tender their L&T shares in the ₹10,000 crore worth L&T share buyback till September 25. L&T had earlier announced that the buyback will be done via the tender offer route, wherein the shareholders will tender shares at a particular price.
The floor price for the share repurchase has been fixed at ₹3,200 apiece, which is over 9% higher than Friday’s closing price. L&T has increased the share buyback price from ₹3,000 earlier factoring in market sentiment after a strong 15% rally in L&T shares since the announcement of the share buyback. “One of the key objectives of the company’s Strategic Plan, Lakshya ’26, is to enhance the return on equity (ROE).
Return on equity capital to shareholders in the form of Buyback of shares of the Company is a step in that direction," said Amit Anwani - Research Analyst, Prabhudas Lilladher. Also Read: L&T buyback opens: Date, ratio, price, other details in five points The board of directors of the company has fixed buyback ratio at 9:38 for small shareholders whereas Larsen & Tourbo buyback ratio for the general category of all kinds of shareholders has been fixed at 11:574. In this Larsen & Tourbo buyback offer, the engineering behemoth aims to buy 31,250,000 shares through a tender route, representing 2.4% of the total equity, which amounts up to ₹10,000 crore.
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