L&T buyback: Price, acceptance ratio, other details. Should you participate?
L&T buyback 2023: In the history spanning to the tune of eight decades, engineering behemoth Larsen & Turbo (L&T) declared first ever buyback offer in the week gone by. L&T buyback price was announced on Tuesday last week at ₹3,000 per share price. Means, the company would buyback L&T shares from retail investors at ₹3,000 per share price, which is ₹351 per share higher against current L&T share price of ₹2,649 apiece on NSE. The Indian engineering major has announced that L&T buyback size would be ₹10,000 crore. However, stock market experts are not much moved by this buyback offer of L&T as they believe that the engineering company hasn’t offered much on the table for shareholders. They went on to add that L&T buyback acceptance ration would be around 35 per cent to 40 per cent.
Speaking on L&T buyback of shares, Avinash Gorakshkar, Head of Research at IIFL Securities said, “Except L&T buyback price and size, various L&T buyback news is still awaited like L&T buyback date, L&T buyback record date, L&T buyback ratio, etc. So, I don’t L&T buyback offer opening in first fortnight of August 2023. So, one should wait as there is not much offer on the table for investors at current L&T share price of ₹2,649 apiece.”
L&T buyback 2023: Participate or not?
Avinash Gorakshkar of Profitmart Securities said that one should decide about participating in the buyback offer comparing the buyback offer and L&T share price at the time of buyback opening date. If the margin is 10 per cent then one should apply. He said that L&T buyback acceptance ratio is expected to remain around 35 per cent.
Echoing with Avinash Gorakshkar’s views, Anuj Gupta, Vice President — Research at IIFL Securities said, “L&T has reported strong quarterly numbers and hence L&T share price is expected to remain bulls’ favourite. So, it is very important to look at the buyback price offered and the share price quote at the time of participation. Once, L&T record date is announced, some buying before the buyback opening offer is also expected to push share price by around ₹100 to ₹120 per share. So, 10 per cent difference should be the benchmark while participating in this L&T buyback offer.”
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.
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Updated: 29 Jul 2023, 10:40 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.