On Tuesday, the engineering giant Larsen & Toubro (L&T) announced a buyback worth Rs 10,000 crore. In the meantime, the business has also climbed the list of the best buybacks in the nation. It’s the second time a non-IT company has announced plans to repurchase shares at this level, despite the fact that corporations in the information technology (IT) industry are well recognised for their huge buybacks.
The largest firm in the nation, Reliance Industries, had already announced a buyback of Rs 10,440 crore. However, the conglomerate bought a third of the total repurchase offer, which was made available through the programme at a price of up to Rs 870 per share.
Tata Consultancy Services (TCS) took the top spot on the list with a repurchase of Rs 18,000 crore, followed by Infosys and Wipro with buybacks of Rs 13,000 crore and Rs 12,000 crore, respectively. According to data obtained from primedatabase.com, TCS, the largest IT business, cumulatively purchased shares for Rs 66,000 crore between 2017 and 2022.
The shareholders must approve L&T’s buyback proposal before it can proceed. A special dividend of Rs 6 per equity share was also approved by the Board of Directors. In an exchange statement, L&T stated that “these proposals underline the company’s confidence in achieving its growth plans and endorses the financial strength.”
L&T may use the tender offer method on the markets to offer to purchase 3.33 crore shares, or 2.4 percent of the fully paid up equity shares. The buyback price of Rs 3,000 represents a 17.1% premium over the share’s current market price of Rs 2,560.90.
