Shares of engineering and infrastructure giant Larsen & Toubro were up nearly 3.5% at open on Tuesday after the company raised the offer price for its share buyback plan.
What Happened: L&T has opted to raise its share buyback price, adjusting it from ₹3,000 to ₹3,200. This decision follows a notable surge in the company’s stock price over the past month.
At the same time, it reduced the number of shares under buyback to 3.12 crore shares from 3.33 crore shares earlier, making up 2.2% of the company’s shares.
This move places L&T as the second company, following BSE, to revise its share buyback price recently. September 12 is the record date for L&T’s buyback. However, the precise opening and closing dates for the buyback issue are yet to be confirmed.
L&T initially announced its share buyback plan, valued at ₹10,000 crore, on July 25, after unveiling its June quarter results. This buyback initiative is notable, considering the company’s unsuccessful attempt in 2018.
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Since the announcement, L&T’s shares have witnessed an impressive upswing of nearly 15%, reaching an all-time high, thanks in part to a major contract from Saudi Aramco. This surge brought it within a close ₹70 range of the initial buyback price of ₹3,000.
Price Action: L&T’s share price was up 3.44% at ₹2,993.75 at the start of trading on Tuesday.
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