L&T buyback opens next week. Date, ratio, price, other details in five points
L&T buyback: The engineering and infrastructure coglomerate Larsen & Turbo (L&T) has declared buyback of shares that will open on 18th September 2023 i.e. on Monday next week.
This Larsen & Turbo buyback of shares will remain open till 25th September 2023. In its letter of offer shared on Indian stock market exchanges, Larsen & Turbo declared share buyback through tender route at a floor price of ₹3,200 apiece.
LT share price today is around ₹2,906 apiece on NSE, which means Larsen & Turbo buyback price will be available at a premium of around 10 per cent when the buyback offer opens on Monday next week. The board of directors of the company has fixed buyback ratio at 9:38 for small shareholders whereas Larsen & Turbo buyback ratio for general category of all kinds of shareholders has been fixed at 11:574.
In this Larsen & Turbo buyback offer, the engineering and infrastructure coglomerate aims to buy 31,250,000 company shares through tender route, which amounts up to ₹10,000 crore. Speaking on L&T buyback acceptance ratio, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, "Predicting the exact acceptance ratio for Larsen and Toubro's (L&T) buyback offer with certainty is a difficult task due to various influential factors, notably the market price of L&T shares when the buyback commences.
Nonetheless, an assessment in light of prevailing market sentiment and L&T's robust growth prospects suggests that shareholder participation may not be as extensive. Additionally, it's worth noting that the premium offered by the company is not so enticing, potentially resulting in an estimated acceptance ratio of approximately 35-40%." Sugandha went on to add that anticipated acceptance ratio
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