Construction and Engineering major Larsen and Toubro Limited (L&T)’s Board of Director approved the Buy-Back of 60 million shares for the price not exceeding Rs. 1500 apices making the Buy-Back proposal worth Rs.9,000 crores.

The buy-back price was announced at 13% premium as per the closing price of the share on the day prior to the approval. The buyback approval constitutes around 4.2% of the total paid up equity of the company.

The company said in the filings to the exchanges, “The buyback is proposed to be made from the shareholders of the company on the proportionate basis under the tender offer route using stock exchange mechanism in accordance with the provision contained in the Regulations and the Companies Act, 2013 and rules made thereunder.”

The company also said that the actual premium would be more than the average of the closing price of the equity shares quoted on the National Stock Exchange for a time period of two weeks prior to the date of the board meeting. The company also stated that the buyback is subject to the approval of the member by means of the postal ballot.

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