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Business News/ Markets / Stock Markets/  L&T share price hits new 52-week high as company raises buyback price to 3,200
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L&T share price hits new 52-week high as company raises buyback price to ₹3,200

L&T share price jumps after company increases buyback price to ₹3,200 from ₹3,000.

Larsen & Toubro share price today opened at ₹2,954.05 apiece on BSE.Premium
Larsen & Toubro share price today opened at 2,954.05 apiece on BSE.

Larsen & Toubro (L&T )share price jumped 3.6% to touch a new 52-week high on Tuesday's trading session after the engineering & infrastructure conglomerate revised its share buyback price to 3,200 from 3,000. Larsen & Toubro share price today opened at 2,954.05 apiece on BSE.

On Monday L&T in an exchange filing said that it has also decreased the maximum number of shares planned to be bought back from 3.33 crore to 3.12 crore, representing 2.22% of the equity capital.

The company also said that improving its return on equity (ROE) and maximising shareholder value are two main goals of Lakshya '26, which is the company's strategic plan.

A step in that direction is the return of equity capital to shareholders through the buyback of company shares.

On 26 July, L&T had announced the buyback—the first such offer in its eight-decade-long history.

L&T had said it may offer to buy back a 2.4% stake, or 3.33 crore of shares, held by public shareholders through a book-building process on the stock exchange.

The buyback offer price at the time of the announcement, 3,000 per share, represented a 17% premium over the company's then-current market price of 2,562.

The L&T stock has since recovered drastically, reducing this premium and decreasing the likelihood that shareholders will submit their shares in the planned buyback. So far in September L&T stock has risen 10%.

At Monday’s closing, the price of 2,894, the original buyback offer price was at a premium of just 3.7%.

“L&T is focused on enhancing its return on equity (RoE)," said R. Shankar Raman, whole-time director & CFO – L&T, in a statement on Monday evening.

The upward revision in the buyback price is meant to sweeten the offer for public shareholders.

Also Read: L&T increases buyback price by 200 to 3,200 as shares jump

According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, post the buy back news , L&T stock price today has seen strong gap up opening , bias remains positive and one can hold positions with extended target toward 3,100 however fresh longs should be avoided considering overbought conditions, incase of any dip toward 2,900 that can be bought.

As per trendlyne data, L&T stock price rose 51.4% and outperformed its sector by 0.1% in the past year.

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Updated: 12 Sep 2023, 10:03 AM IST
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