Engineering and infrastructure conglomerate Larsen & Toubro (L&T) has hiked the price for its proposed share buyback by Rs 200 to 3,200, even as it reduced the number of shares to be bought to 33.33 million.The total number of shares proposed to be bought back has been reduced from the earlier 31.25 million, it said in a regulatory update.“L&T is focused on enhancing its Return on Equity. In fact, one of the core objectives of the company’s five-year strategic plan ‘Lakshya 2026’ is to maximise shareholder value through improved RoE,” R Shankar Raman, Whole Time Director & CFO at L&T said in a regulatory update.
“To successfully complete the proposed buyback plan, thereby realising its RoE objective, and considering the present market sentiments, the company has decided to increase the buyback price to Rs 3,200 per share from the earlier announced price of Rs 3,000. The company is confident that the shareholders will take advantage and benefit from the buyback offer,” he added.
Earlier in July, L&T launched its first-ever buyback in its history with plans to acquire shares worth Rs 10,000 crore, and if successful, this would be the first time since it got listed in 1950. This was the second attempt by the company, after the conglomerate had to drop its Rs 9,000-crore share buyback plan in 2019 after Sebi rejected it for being non-compliant with rules.Ahead of the announcement, L&T’s stock at Rs 2,561.95 on the BSE, while on Monday, it closed at Rs 2,894.05, down 0.27% from that of the previous trading day.