Sebi denies permission for L&T buyback offer

Gayathri Udyawar
/ Categories: Trending, DSIJ News

Stock market regulator SEBI has rejected Larsen & Toubro's (L&T) planned buyback of 6 crore equity shares by tender offer route from the stock exchange. The stock of L&T was down nearly 2 per cent in early morning trade on Monday.

 

The proposed buyback was at a price of Rs. 1,475 per share, amounting to approximately Rs. 9,000 crore. The Securities and Exchange Board of India (SEBI) ruled that the buyback offer is not in compliance with Section 68 of Companies Act, 2013 and SEBI' Regulations, 2018 for buy-back of Securities and asked L&T not to proceed with the offer.

 

SEBI reasoned that if the buyback proceeds, in the event of full acceptance, the ratio of the total of L&T's secured and unsecured debts would be more than double of its paid-up capital and free reserves based on consolidated financial statements of the Company.

 

Reacting to this development, the stock of L&T was trailing in the early morning session. At 9:27 hours on Monday, the stock was quoting Rs. 1,294.00 per share, down by Rs. 24.25 or 1.84 per cent. While the benchmark index BSE Sensex was at 36,447.70, down by 61.09 points or 0.17 per cent.

Previous Article Five stocks with selling interest
Next Article ITI Limited spikes 10 per cent on BharatNet contract
Rate this article:
5.0

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR