Mumbai, Larsen & Toubro on Thursday approved a buyback proposal of 6 crore shares, amounting to Rs 9,000 crore, at a price of Rs 1,500 apiece. This is a premium of 13.45 percent as of Tuesday’s closing price of Rs 1,322.15.
The number of shares make up for 4.9 percent of total paid up equity share capital.
“The buyback is proposed to be made from the shareholders of the Company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the Regulations and the Companies Act, 2013 and rules made thereunder,” the company said in a filing to the exchanges.
Further the company said that the actual premium would be over the daily average of the closing prices of equity shares of the Company quoted on the National Stock Exchange during the two weeks preceding the date of the Board meeting.
The buyback is subject to approval of the members by means of a special resolution through a postal ballot. The timeline for other processes will be announced later.
In the past one month, the stock has rallied around 6 percent, while in the past three days, it has risen 9 percent. At 12:06 hrs Larsen & Toubro was quoting at Rs 1,355.10, up Rs 32.95, or 2.49 percent, on the BSE. The stock touched an intraday high of Rs 1,359.20 and an intraday low of Rs 1,320.00.