L&T Buyback Awaits Approval From SEBI

Larsen & Toubro Ltd.’s Rs 9,000-crore share buyback, which the construction major’s board approved in August last year, awaits approval from the market regulator, according to two bankers in the know.

The Securities and Exchange Board of India is evaluating the buyback tender offer, said the bankers on condition of anonymity.

The regulator might respond with its observations on the tender offer document by early next week, said one of the bankers cited earlier. The company would have to answer SEBI’s queries before it conducts the buyback. The second banker cited earlier said it’s unlikely the buyback will begin in January.

Shareholders approved the buyback via postal ballots on Oct. 3 and the company placed a draft letter of offer with the market regulator on Oct. 10, according to filings available on SEBI’s website.

A spokesperson for L&T didn’t respond to BloombergQuint’s queries.

L&T had approved the buyback of 6.1 crore shares at Rs 1,475 apiece comprising 18.72 percent of the company's net worth and 4.35 percent of its paid-up equity.

The buyback was open to those holding equity shares with record date of Oct. 15. It was also available to the holders of global depository shareholders if they converted them to equity shares by the same date.

The government which holds 1.8 percent stake in the company via Specified Undertaking of Unit Trust of India is looking to participate in the buyback to raise funds through divestment.