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The board of directors of engineering giant Larsen & Toubro on Thursday approved the acquisition of six crore shares at a maximum of ₹1,500 apiece. The total buyback will be worth ₹9,000 crore.
The procedure will be completed in 90 days. The L&T board also recommended a dividend of ₹16 per share. The dividend in the previous year was ₹14 per share.
In a BSE filing, L&T said the price for the buyback will be determined by the board or a committee. It will be at a premium on the daily average of the closing prices on the NSE for the two-week period prior to the board meeting, and will be capped at ₹1,500 per share.
The board’s decision was ratified by the investors at the company’s AGM on Thursday. L&T Chief Executive Officer & Managing Director SN Subrahmanyan told reporters after the AGM that the buyback is a positive indicator of the economy and the company.
The L&T stock settled at ₹1,352.50 on the BSE, up 2.3 per cent from the previous close. In intra-day trade, the stock had touched a high of ₹1,363.90 and a low of ₹1,320.
Shares of L&T have risen 9 per cent ever since the company announced its intention to buy back shares on Saturday (August 18).
The buyback, the first by L&T, would constitute 4.29 per cent and 4.7 per cent of of the total paid-up equity share capital and market capitalisation of the company, respectively.
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