L&T buyback opens next week. Date, ratio, price, other details in five points

The board of directors of the company has fixed buyback ratio at 9:38 for small shareholders whereas Larsen & Turbo buyback ratio for general category of all kinds of shareholders has been fixed at 11:574.

In this Larsen & Turbo buyback offer, the engineering and infrastructure coglomerate aims to buy 31,250,000 company shares through tender route, which amounts up to ₹10,000 crore.

Speaking on L&T buyback acceptance ratio, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, “Predicting the exact acceptance ratio for Larsen and Toubro’s (L&T) buyback offer with certainty is a difficult task due to various influential factors, notably the market price of L&T shares when the buyback commences. Nonetheless, an assessment in light of prevailing market sentiment and L&T’s robust growth prospects suggests that shareholder participation may not be as extensive. Additionally, it’s worth noting that the premium offered by the company is not so enticing, potentially resulting in an estimated acceptance ratio of approximately 35-40%.”

Sugandha went on to add that anticipated acceptance ratio is closely tied to individual shareholder decisions, which can vary widely. Some investors may opt to take part in the buyback, while others might choose to retain their L&T shares. These decisions are influenced by diverse factors including personal financial needs, specific investment objectives, and individual risk tolerance levels.

Important Larsen & Turbo buyback details

Here we list out five key details in regard to Larsen & Turbo buyback 2023:

1] L&T buyback price: The engineering and infrastructure coglomerate has declared Larsen & Turbo buyback price at ₹3,200 apiece, which is around 10 per cent higher from LT share price of ₹2,906 apiece.

2] L&T buyback ratio: The board of directors of the company has fixed buyback ratio at 9:38 for small shareholders whereas Larsen & Turbo buyback ratio for general category of all kinds of shareholders has been fixed at 11:574.

3] L&T buyback date: The buyback of shares will open on 18th September 2023 and it will remain open till 25th September 2023.

4] L&T buyback acceptance ratio: The acceptance ratio is expected to be around 35 per cent to 40 per cent.

5] L&T buyback size: The company aims to buy up to 31,250,000 LT shares via tender route, which amounts up to ₹10,000 crore.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Updated: 16 Sep 2023, 08:24 AM IST