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Larsen & Toubro Buyback 2023
क्या आपको Market से Share खरीद कर Buyback में participate करना चाहिए?
पैसे कब मिलेंगे?
कितने shares buyback होंगे?

Larsen & Toubro has approved buying back 3.3 crore shares (2.4% of its equity) through the tender offer route at a price of up to ₹3,000 per share for a maximum consideration of ₹10,000 crore.

This is the first ever share buyback by the company, which attempted a buyback in 2019 but ran into trouble with the  SEBI

At that time, the company was planning to buy back shares worth ₹9,000 crore at ₹1,475 a share, but was directed by SEBI not to proceed with the buyback.

The regulator had said that the aggregate of secured and unsecured debts owed by the company after the buy-back (assuming full acceptance) will be more than twice the paid-up capital and free reserves of the company based on consolidated financial statements, and the buyback was not in compliance with the Companies Act and SEBI norms. This was due to the debt of the financial services company in the group, L&T Finance Holdings.

Under the current guidelines, if the group has a non-banking finance company whose debt-to-equity ratio is under 6, then its debt would be excluded from calculating the debt-to-equity ratio for the purposes of the buyback. Raman said the financial services company has a debt-to-equity ratio of less than 4 now. 

L&T buyback acceptance ratio is expected to remain around 35 per cent.

Assuming the closing value of L&T on the buyback's record date is ₹3000, a shareholder with up to 66 shares will be considered a small shareholders

No Tax on Buyback Profit

When would I get the money in my account?

However, details such as record date, timeline, and others will be announced in due course

Proposed buyback is now subject to approval of shareholders by way of a special resolution through a postal ballot

Should I buy L&T?