With this, L&T has become the second company after BSE Ltd. to revise its share buyback price.
Tuesday, September 12 is the record date for the company’s buyback. Timeline for opening and closing of the buyback issue is yet to be declared.
“To successfully complete the proposed buyback plan, thereby realizing its RoE objective, and considering the present market sentiments, the company has decided to increase the buyback price to Rs. 3,200 per equity share from the earlier announced price of Rs. 3,000,” said R. Shankar Raman, Whole Time Director & CFO – L&T in a statement.
L&T had announced a share buyback worth Rs 10,000 crore on July 25 after its June quarter results, a first in the company’s history after a failed attempt five years earlier in 2018.
Since then, L&T’s shares have risen nearly 15% to an all-time high.
“The company is confident that the shareholders will take advantage and benefit from the buyback offer,” added Shankar Raman.L&T’s move comes after BSE Ltd. also raised its buyback price higher from Rs 816 to Rs 1,080.
L&T added that it is focused on enhancing its Return on Equity (RoE). One of the core objectives of the company’s five year strategic plan Lakshya 2026 is to maximize shareholder value through improved RoE, the company said.
On Monday, L&T scrip ended at Rs 2898.05, down 0.27% on the BSE. Benchmark Sensex ended 0.79% higher.
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