Larsen & Toubro approves Rs 10,000 crore share buyback

Larsen & Toubro Ltd announced that the Board of Directors in a board meeting has approved the Buyback of up to Rs 10,000 crore.

In a regulatory filing, the company informed that the approval of buyback of 3,33,33,333 of its fully paid-up equity shares of face value of Rs. 2/- each from the members of the Company at a Maximum price of up to Rs 3,000 per Equity Share for an aggregate consideration of up to Rs 10,000 crore, through the tender offer route through stock exchange mechanism.

“The specific price at which the Buyback will be made may be determined by the Board/Committee, at an appropriate time”, the company said. 

The proposal to buy back shares is subject to the approval of shareholders, the company said in a statement. 

As per the data, this is company’s second attempt to buy back shares as its board had approved a proposal to buy back shares worth Rs 9000 crore in 2018. 

Further, in a board meeting, the Board has also approved a special dividend of Rs 6 per share. The record date for the same is fixed on August 2 and it will be paid on or before August 14, the company quoted.

On Tuesday, shares of Larsen & Toubro hit 52-week high at Rs2,670 per share in the early morning and at around 12:12 pm, it was trading at Rs 2665 per share, higher by 4% on the BSE.

Source: Media Reports