Larsen & Toubro Ltd., one of the largest Indian multinational company headquartered in Mumbai will purchase back as much as 995.59 million pounds of its shares, the company said in a stock exchange filing on Thursday (23).
The company will buy 60 million shares (or 4.3 percent of equity) at 16.59 pound apiece. The price is higher than the stock's all-time high of 16.26 pound it reached on February 01, 2018.
“The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the Regulations and the Companies Act, 2013 and rules made thereunder,” the company added in a Bombay Stock Exchange (BSE) filing.
Brokerages CLSA and Macquarie had judged that the corporate giant would buyback between 497.79m pounds and 774.35m pounds worth of shares.
Buyback offers have turned into a popular way for Indian corporate companies flush with cash to pay off shareholders. Indian technology companies like Tata Consultancy Services Ltd., Infosys, Wipro, and others have carried out share buybacks in the recent past.
Larsen & Toubro Ltd., on India’s BSE, opened on a slightly positive note at 14.67 pounds, and touched an intra-day high of 15.09 pounds to close at 14.96 ponds against the previous close of 14.63 pounds on Thursday (23).
