L&T Board on Thursday approved the buyback of 6 cr equity shares at ₹1,500 per share. Accounting for approximately 4.29% of the total paid up equity share capital worth ₹9,000 cr.
‘The specific price will be determined by the board/committee under the authority of the shareholders in accordance with the SEBI (Buyback of Securities) Regulations, 1998 (“the Regulations”), at a premium over the daily average of the closing prices of equity shares of the company quoted on the National Stock Exchange of India Limited during the two weeks preceding the date of the board/committee meeting subject to the maximum price of ₹1,500 per share,’ L&T said in a statement
The buyback will happen on a proportionate basis in accordance with the provisions contained in Regulations and the Companies Act 2013 through stock exchanges. Shares traded 2% higher at ₹1,348.65.
Benefit of buyback
M Naik, Group Executive Chairman at L&T, told ETNow: “We want to give back to our shareholders. They have been loyal to us. We have been publicly listed from 1951 and we were looking for an opportunity to reward with so much cash lying with us and all the capacity build-up we have done ahead of time for all our future requirements.’
‘If there is a major acquisition, we have made sure that cash flow is available’, he added. L&T holds ₹8,700 cr cash and cash equivalents as per its previous financial year reports.