L&T gains 2% as board approves share buyback proposal

Shares of Larsen & Toubro (L&T) today rose by more than 2 percent on bourses after its board approved a proposal to buy back six crore shares amounting to Rs 9,000 crore.

The stock settled at Rs 1,352.50 on BSE, up 2.3 percent from the previous close. In the intra-day trade, the stock had touched a high of Rs 1,363.90 and a low of Rs 1,320.

Similar movements were witnessed on the NSE, wherein the stock closed 2.07 percent higher at Rs 1,349.95. During the trading session, the scrip has moved up 3.12 percent to touch a high of Rs 1,363.90

Following the upward movement in the counter, the company's market capitalization climbed by Rs 4,289 crore to Rs 1,89,619 crore.

In a filing to stock exchanges, L&T said its board has approved a proposal to buy back six crore shares at a maximum price of Rs 1,500 apiece, amounting to a total of Rs 9,000 crore.

The buyback price is at 11 percent premium to today's closing price.

This is L&T's first-ever share buyback proposal. The buyback size is 4.29 per cent of paid-up equity capital of the company.

This year, boards of many IT firms including TCS, HCL Technologies and Mphasis have approved proposals to buy back shares.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)