L&T turns ex-date for buyback; zooms 4% on raising buyback price to Rs 3200

The company has revised the buyback price upwards from Rs 3,000 per share to Rs 3,200 per share

Shares of Larsen & Toubro (L&T) rallied 4 per cent on the BSE to scale a fresh high of Rs 2,998 in Tuesday’s intra-day trade after the company revised its buyback price upwards from Rs 3,000 to Rs 3,200 per share.

At the same time, maximum no of shares to be bought back has been reduced to about 31.2 million shares from about 33.3 million shares earlier. The revised buyback represents 2.22 per cent of the paid up equity share capital of the company.

Meanwhile, the stock of L&T turned ex-date for buyback today. The company fixed September 12, 2023 as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buyback.
 

One of the key objectives of the company’s strategic plan, Lakshya ’26, is to enhance the return on equity (ROE) and thereby maximise shareholder value. Return on equity capital to the shareholders in the form of buyback of shares of the company is a step in that direction, L&T said.

L&T has outperformed the market recently with the stock rallying 11 per cent in the past seven trading days. Thus far in the calendar year, it has soared 43 per cent, as compared to a 10 per cent rise in the S&P BSE Sensex.

"Given the strong run up the stock has witnessed post announcement of buyback, strong Q1 results and robust future outlook, the management in order to successfully execute the buyback has revised the offer. The buyback will eventually enhance the management’s objective to increase the ROE of the business as envisaged under the Lakshya 2026 plan", ICICI Securities said in a note.