Larsen & Toubro Share Buyback: There is good news for investors who have shares of engineering company Larsen & Toubro. He has a chance to earn more than 17 per cent in a short period of time. The company has announced share buyback through tender route. Larsen & Toubro will buy back shares worth Rs 10,000 crore from investors at the rate of Rs 3000 per share.
17 percent return to investors
Larsen & Toubro has announced that the company will buy back shares at a maximum price of Rs 3,000 per share. The stock of the company has closed at Rs 2560.90 per share at the close of the stock market on Tuesday. That is, the investors who tender the shares will directly benefit by 17.18 per cent or Rs 440 per share.
Buyback at Rs 3,000!
The company’s board has approved the buyback of a total of 3.33 crore shares of face value of Rs 2 each. The company said in its filing that the buyback will be done at the rate of Rs 3,000 per share and if the buyback price is increased then approval from the board will have to be taken.
L&T doing share buyback for the first time
In recent times, IT giants like TCS, Infosys and Wipro have done share buyback. But after the listing on the stock exchange of Larsen & Toubro, this is the first time when the company is doing share buyback. The board will soon decide on the price at which the buyback will be done. Under share buyback, the company buys back shares from its shareholders. After buyback, the number of shares available in the market decreases, due to which the value of the share increases.
Declaration of dividend of Rs 6 per share
Larsen & Toubro has announced the results for the first quarter of the current financial year. In the first quarter, the company’s profit has increased by 46 percent while the revenue has increased to Rs 47,882 crore. The company has also announced a special dividend of Rs 6 per share to its investors.
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