- By Vaamanaa Sethi
- Thu, 28 Sep 2023 01:10 PM (IST)
- Source:JND
Larsen and Toubro (L&T) shares are trading at record high on Thursday’s trading session, crossing Rs 3,000 mark. L&T stock recorded an intraday high of Rs 3,049 per piece.
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The stock rallied over 2% after the company shared buyback bid settlement later on September 28. In addition to settling the bids, there will also be a return of unaccepted equity shares and payment of consideration to eligible shareholders who participated in the buyback process.
The Rs 10,000-crore buyback was subscribed 7.2 times, led by qualified institutional buyers (QIBs), showed data on the NSE. Retail investors shared a 100 percent acceptance ratio (AR) in the buyback, as per consensus on X.
In terms of subscriptions, Qualified Institutional Buyers (QIBs) represented a significant portion, contributing to more than 86 percent of the bids. Non-institutional investors (NIIs) had a minimal share, making up less than 1 percent of the bids, while individual investors accounted for 12.4 percent.
The company received offers totaling 22.5 crore shares, amounting to Rs 72,160 crore, against the 3.13 crore shares that were on offer.
L&T stock has climbed over 12% against a 2% rise in BSE Sensex, according to reports.
The upper limit for the share buyback was established at Rs 3,200 per share, representing a 5.4 percent premium compared to Thursday's highest price. One of the primary goals behind the company's decision to launch this buyback was to enhance the return on equity for shareholders, ultimately maximizing shareholder value.
UBS analysts have issued a 'buy' rating for the stock, elevating the target price to Rs 3,600 per share, up from Rs 3,040 per share.
"The new strategy ensures L&T's appetite for consistent new order growth and ensures expansion opportunities outside the domestic market. We expect the company to record a healthy 17/32 percent compounded annual growth rate (CAGR) in core sales/EPS in FY23-26. The cyclical earnings momentum, coupled with improving capital allocation makes L&T a better play," the brokerage firm added.