L&T increases buyback price by ₹200 to ₹3,200 as shares jump
MUMBAI : Engineering and construction giant Larsen and Toubro Ltd (L&T) on Monday evening increased its offer price to ₹3,200 apiece from ₹3,000 per share, for its proposed upcoming ₹10,000 crore share buy back, as the stock rallied and the premium to market price narrowed since the original announcement in July. On 26 July, L&T had announced the buyback—the first such offer in its eight-decade-long history.
L&T had said it may offer to buy back a 2.4% stake, or 33.33 million of shares, held by public shareholders through a book building process on the stock exchange. During the announcement the buyback offer price at ₹3,000 per share was a 17% premium to the company’s market price of ₹2,562 then.
However, the stock has rallied significantly, narrowing this premium, lowering chances of shareholders tendering their shares in the proposed buyback. At Monday’s closing price of ₹2,894, the original buyback offer price was at a premium of just 3.7%.
“L&T is focused on enhancing its return on equity (RoE)," said R. Shankar Raman, whole time director & CFO – L&T, in a statement on Monday evening.
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