L&T announces first ₹10,000 cr buyback

Firm to buy shares at 17% premium to the stock's current price

- Anirudh Laskar

Larsen and Toubro (L&T) Ltd on Tuesday proposed to buy back shares worth as much as ₹10,000 crore from its public shareholders, the engineering giant’s first such offer in its eight-decade-long history.

“We are walking the talk by returning surplus cash to shareholders in our journey to improve the group return ratios over the Lakhshya Strategic Plan period ending FY26," said S.N. Subrahmanyan, chief executive and managing director, L&T.

L&T aims to repurchase 33.33 million shares, or 2.4% of outstanding stock, from the public through a book-building process. It will offer up to ₹3,000 per share, a 17% premium to the stock’s closing price on Tuesday, to the shareholders willing to tender their shares in the buyback. “The group’s focus continues to be on cash generation, planned capital allocation and on enhancing shareholders’ wealth," Subrahmanyan added.

L&T made the buyback announcement alongside the release of its quarterly earnings. For the June quarter, L&T recorded a 46% jump in profit to ₹2,493 crore, beating analysts’ estimate of ₹2,128.5 crore.

Amid the execution of its large order book in L&T’s projects and manufacturing portfolio, the company’s consolidated revenue in the June quarter grew by 34% to ₹47,882 crore, also surpassing analysts’ estimate of ₹41,056 crore.