Larsen and Toubro or L&T, one of the world’s leading engineering company is considering a share buyback proposal on July 25 during a meeting of its board of directors.
The meeting will also see the approval by the board on the unaudited consolidated and standalone financial results for the quarter ended June 30. Buyback of shares of L&T would mean a reduction in the existing shares of the company in the open market.
As per the information available, there would be two proposals that will be considered by the board during the meeting.
- Buyback of equity shares of the company in accordance with the provisions of the Companies Act, 2013 and SEBI’s Buyback of securities Regulations 2018.
- Special Dividend on equity shares for the financial year 2023-24. If approved, the record date for the purpose of determining the entitlement of the equity shareholders for the said dividend shall be on Wednesday, August 2, 2023.
Earlier in 2019, L&T were denied permission for its Rs 9,000 crore share buyback by SEBI. Further, in its regulatory filing the company clarified that the market regulator asked the company not to proceed with the buyback.
L&T had proposed to buy back up to 6.1 crore shares from the shareholders at the price of Rs 1,475 per equity share, aggregating to Rs 9,000 crore. The offer was applicable to those holding equity shares as on October 15.
The shares of L&T saw a decline of 0.18 percent at Rs 2,489.60 on the BSE on Thursday.
