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L&T Announces Record Date For Share Buyback For Rs. 9000 Crore


Larsen and Toubro, a leading engineering and construction company, has announced a share buyback worth Rs. 9000 crore. The company will buyback close to 6 crore equity shares that is equivalent to 4.29% of the total paid up equity share capital via the tender offer route. Here are few important aspects to know about L&T's buyback as investors decide on whether to tender their shares in the buyback or not.

L&T Announces Record Date For Share Buyback For Rs. 9000 Crore

Buyback price: The share buyback price has been fixed at Rs. 1,475 per equity share. The shares of the company are trading higher by over 2% at Rs. 1269.65 today. This simply means a return of almost 16% from the current prices at the buyback price of Rs. 1,475.

The company's cash and liquid assets portfolio is worth about Rs. 17,425 crore.

Record date: The record date for the buyback offer has been fixed at October 15th. In a statement, the infrastructure major said, "We would like to inform you that the Company has fixed Monday, October 15, 2018 as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the buyback offer of the Company".

The company has announced a buyback offer to improve its return on equity (RoE) and return excess cash with the company to its shareholders. MD and CEO of the company, SN Subrahmanyan said, "We do have capex as we look into the future, we do have propositions of other businesses. Of course, we will continue to pay the dividend. Inspite of doing all this we will have surplus cash-on-hand. We have been promising our shareholders that we will be increasing our return on equity to a certain extent, and it is in that direction".

Read more about: l ampt share buyback
Story first published: Thursday, October 4, 2018, 11:10 [IST]
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