L&T Sets Record Date for Rs 10,000 Crore Share Buyback Plan

29 Aug 2023 , 12:48 PM

Larsen and Toubro (L&T) has announced that September 12, 2023, will serve as the record date to determine the eligibility of equity shareholders for participation in the company’s proposed share buyback plan.

The company’s board of directors had previously approved a plan on July 25, 2023, to repurchase shares valued at up to Rs 10,000 crore, excluding any applicable buyback tax.

Shareholders’ approval for the buyback was secured on August 25, 2023. The plan involves repurchasing a maximum of 3,33,33,333 fully paid-up equity shares, each having a face value of Rs 2. The repurchase will be conducted at a price of Rs 3,000 per equity share, using a tender offer route facilitated by stock exchanges.

In a recent public notice, L&T outlined the structure of the buyback scheme. The equity shares earmarked for repurchase will be categorized into two segments: a reserved category for small shareholders and a general category for other eligible shareholders.

L&T’s move aligns with its strategic plan ‘Lakshya 26,’ formulated in 2022. One of the primary objectives of this plan is to enhance return on equity and maximize shareholder value. As part of these efforts, the company seeks to boost profitability, release working capital, increase dividends, and, notably, return surplus capital to shareholders through the share buyback initiative.

This share buyback initiative underscores L&T’s commitment to driving shareholder value and implementing strategic measures that align with its long-term growth goals. As the record date approaches, the company aims to execute a comprehensive plan that reflects its dedication to creating value for its stakeholders.