L&T sets record date for its Rs 10,000 crore-buyback. Check details
Larsen and Toubro (L&T) has fixed September 12 as the record date for its Rs 10,000 crore buyback, which will be done through the tender route.
The record date will determine the number of shareholders who will be eligible to participate in the buyback. The company has recently received shareholder's approval for the same.
Under the proposed buyback of shares, L&T will take back 3.3 crore shares from shareholders at a maximum price of up to Rs 3,000 apiece, a 17% premium from the market price from the date of announcement.
«The buyback committee may determine the specific price at which the buyback will be made, at an appropriate time, which will be subject to the final buyback offer price and adjust the number of equity shares within the buyback size,» L&T said.
This is the first buyback announced by the company since the listing.
The amount required by the company for the buyback is intended to be met out of current surplus or cash balances or cash available from internal accruals.
Under a buyback, the company buys back its own shares from shareholders and it is seen as a tax-efficient way to give cash back to investors.
Share buyback reduces the number of shares available in the market and thereby increases the real value of the stock.
Analysts say L&T is back on the path of RoE enhancement, with buyback and dividend to raise its RoE 89 bps. CLSA said FY24's buyback of the company will not be the last.
The brokerage reiterated its buy rating on the stock with a target of Rs 3,080, betting on five megatrends of urbanization, climate change, mobility, digital and societal change/sustainability.
«L&T is maintaining a balance of building its core businesses, divesting defocused businesses, and returning surplus cash.
