The board of Laresen & Toubro, which meets today for Q1 results, will also considers proposals of special dividend and buyback. If approved, it would be the maiden buyback offer from L&T.
It may be recalled that in 2019, the company had proposed a buyback of up to 6.10 crore shares from its equity shareholders as on the record date (October 15, 2018) on a proportionate basis by way of the tender offer route at Rs 1,475 a share, considering the debt-equity ratio requirement on the basis of standalone financial statements, post buyback.
However, its Rs 9,000-crore buyback offer was junked by the market regulator. While nixing the proposal, SEBI had said: “Since the ratio of the aggregate of secured and unsecured debts owed by the company after buy-back (assuming full acceptance) would be more than twice the paid-up capital and free reserves of the company based on consolidated financial statements of the company, the buyback offer is not in compliance with Section 68(2)(d) of Companies Act, 2013 and Regulation 4(ii) of SEBI (Buy-back of Securities) Regulations, 2018.”
According to the latest shareholding pattern ending June 30, mutual funds hold 17.46 per cent stake; insurance companies 17,85 per cent (among them LIC holds significant stake of 11.19 per cent); FPIs 24.2 per cent; retail investors 18.52 per cent; and L&T employee trust 13.87 per cent.
The stock of L&T on Monday closed at Rs 2,605.35 on the BSE.