L&T’s Rs 10,000 cr share buyback commences on September 18, to close on September 25

Larsen & Toubro Ltd (L&T), a leading engineering and infrastructure conglomerate, is all set to launch its share buyback program on September 18. The deadline to close the offer or buyback of shares is September 25.
Larsen & Toubro announced a share buyback worth Rs 10,000 crore along with its June quarter results in July. The tender offer is expected to be made at a price of Rs 3,000 per share but the company announced on September 11 that it had increased the buyback price to Rs 3,200 per share.
R Shankar Raman, CFO and whole-time director of L&T, emphasized the company’s commitment to improving its return on equity (RoE). This is in line with the central objective of the five-year strategic plan “Lakshya 2026”, which is to increase shareholder value through RoE optimization. The buyback of L&T shares is an important step towards achieving this goal by returning capital to shareholders.
The engineering firm is leading the RoE ratio with an acquisition price of Rs 3,200 per share, points out offshore brokerage firm CLSA. EPC experts predict that the acquisition will have a minimal impact on its profits and earnings, other than reducing the capital available for investment that could otherwise be used to generate investment income.
As per the buyback regulations, the promoter can choose to participate in the buyback. However, since L&T is professionally managed and lacks identifiable promoters or promoter groups in charge, it is not appropriate to disclose the intentions of the promoters, the current shareholding as of the date of announcement. extensively and transaction details over the past 12 months are irrelevant, the company said.
Funding for the planned acquisition will come from the company’s free reserves (retained earnings), current cash and cash equivalents and/or internal results, as well as from any any other source authorized by acquisition regulations or law.
L&T is a professionally managed corporation worth $23 billion. Founded in Mumbai in 1946 by Danish engineers Henning Holck-Larsen and Soren Kristian Toubro, the company operates in areas such as EPC projects, manufacturing and high-tech services. The company’s shares are listed on the BSE since September 24, 1952 and on the NSE since December 14, 2000.