Wed. Sep 27th, 2023
    L&T Announces Share Buyback

    Larsen & Turbo (L&T), the engineering and infrastructure conglomerate, has announced a share buyback plan that is set to open on September 18, 2023. The buyback offer will remain open until September 25, 2023.

    According to the letter of offer shared on Indian stock market exchanges, L&T will conduct the buyback through a tender route at a floor price of ₹3,200 per share. This represents a premium of around 10% compared to the current market price of ₹2,906 per share on the NSE.

    The company aims to buy 31,250,000 shares, amounting to ₹10,000 crore, through the tender route. The buyback ratio for small shareholders has been fixed at 9:38, while for general category shareholders, it is fixed at 11:574.

    Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors, commented on the expected acceptance ratio of the buyback offer, stating that it is difficult to predict with certainty due to various influential factors. However, based on prevailing market sentiment and L&T’s growth prospects, she estimates an acceptance ratio of approximately 35-40%. She mentioned that the individual shareholder decisions will play a significant role in determining the final acceptance ratio.

    The buyback offer has garnered mixed opinions among experts. While some shareholders may choose to participate in the buyback, others may decide to retain their L&T shares, considering their own financial needs, investment objectives, and risk tolerance levels.

    Key details of the L&T buyback include a price of ₹3,200 per share, a buyback ratio of 9:38 for small shareholders and 11:574 for general category shareholders, the buyback period from September 18 to September 25, an expected acceptance ratio of 35-40%, and a buyback size of up to 31,250,000 shares amounting to ₹10,000 crore.

    Investors are advised to seek guidance from certified experts before making any investment decisions.

    Source: Mint (no URL provided)