L&T Share Buyback: Key details you need to know

14 Sep 2023 , 01:42 PM

Larsen & Toubro Ltd (L&T) is indeed initiating an equity share buyback program with the following details:

1. Buyback Size: The company plans to buy back shares worth Rs 10,000 crores.

2. Buyback Price: Initially, the buyback price was set at Rs 3,000 per share, but it was later increased to Rs 3,200 per equity share.

3. Issue Type: This is a Tender Offer.

4. Issue Size: The company intends to buy back 31,250,000 shares.

5. Face Value: The face value of L&T shares is Rs 2 per share.

6. Listing: The shares are listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

7. Key Dates:

• The last date to buy shares for eligibility in the buyback was September 11, 2023.
• The Record Date, which determines eligible shareholders, was September 12, 2023.
• The offer opens on September 18, 2023.
• The last date for the receipt of tender forms is September 25, 2023.
• The offer closes on September 25, 2023.
• The finalization of buyback acceptance is set for September 27, 2023.
• The last date for the settlement of bids is September 29, 2023.
• The last date for extinguishment of shares is October 11, 2023.

8. Buyback Ratio:

• For the Reserved Category of Small Shareholders, they can tender 9 equity shares out of every 38 fully paid-up equity shares held on the Record Date.
• For the General Category comprising all other eligible shareholders, they can tender 11 equity shares out of every 574 fully paid-up equity shares held on the Record Date.

The company states two primary reasons for undertaking this buyback:

1. Distributing Surplus Cash: By conducting the buyback, L&T aims to distribute surplus cash to its shareholders holding equity shares. This action can enhance the overall return for these shareholders.

2. Improving Financial Metrics: The buyback is expected to improve the company’s return on equity by reducing its equity base. Additionally, it can lead to an increase in earnings per share, which can ultimately enhance shareholders’ value in the long term.