Mumbai, Aug 26
LARSEN & Toubro today obtained an in-principle approval from its shareholders to buy back its own shares and securities.
The company gave no specific reason, size or time frame for its possible buyback programme.
"It is just an enabling resolution that we wanted passed," said the Chairman and Managing Director, Mr A.M. Naik, after the company's AGM on Friday.
According to him, the company is not thinking of a buyback now, but was seeking permission so that there would be an option over the next couple of years to implement a buyback in case the need arose.
The buyback would be subject to such terms and limits and in accordance with the provisions of Sections 77A, 77 AA and 77B of the Company's Act or any statutory modification under other regulations and guidelines applicable in this regard, said the special resolution.
The company has a capital expenditure plan of Rs 600 crore for the current year, Mr Naik said.
Under its new constant portfolio review process, the company has divested some of its businesses and acquired some others, Mr Naik said.
L&T has acquired 65 per cent in Zubair Kilpatrick, a West Asia-based company, which is in the operation and maintenance of electromechanical systems for building utilities and complements the capabilities of L&T's construction division in Gulf region, said Mr Naik in his speech to the shareholders.
The company has also completed its strategic plan for 2004-10 with the help of Boston Consultancy Group (BCG) that will help launch L&T into a global multinational; this plan has been launched under the programme "Lakshya" and the implementation also involves the consultant, he said.
There are ambitious growth target for each of L&T's businesses and also plans on how to go about achieving them.
Also included are synergistic opportunities for diversification of the company's portfolio of businesses.