Shares of the civil construction major Larsen & Toubro (L&T) rallied to a fresh all-time high on the day of the company’s share buyback bid settlement on Thursday, September 28.

L&T’s Rs 10,000-crore buyback was subscribed 7.2 times, with qualified institutional buyers (QIBs) accounting for 86% of the bids. The company received offers for 22.5 crore shares, amounting to Rs 72,160 crore, against the 3.13 crore shares on offer. 

On the other hand, individual investors contributed 12.4%, while non-institutional investors (NIIs) made up less than 1% of the bids. The acceptance ratio (AR) for retail investors is estimated at 100% per the consensus on X, formerly Twitter.

The settlement of buyback bids, return of unaccepted bids and payment of consideration to eligible shareholders will be made on September 28. The buyback was aimed to bolster returns on equity for the shareholders, thereby maximising the shareholder value.

At noon, shares of L&T were trading at Rs 3,022.30, up 1.93% from the last closing price on the National Stock Exchange (NSE). The scrip surged as much as 2.8% to reach a record high of Rs 3,050.50. The price for the share buyback was set at Rs 3,200 per share, which is nearly a 5% premium from the record-high price. 

Additionally, analysts at UBS have raised their target price for the scrip to Rs 3,600 per share from Rs 3,040 apiece, maintaining a ‘buy’ rating. This is the highest price target for the engineering conglomerate among brokerages on Dalal Street.