Larsen & Toubro (L&T) today said that it will seek the approval of shareholders to buy back shares worth up to Rs 9,000 crore.
"Notice is hereby given...to seek approval of the shareholders for buyback of equity shares, proposed to be passed as a special resolution by the members of Larsen & Toubro Ltd by way of postal ballot," the company said in a notice to shareholders.
"The total number of equity shares to be bought back would hence be 6,00,00,000 equity shares..," it said.
On the objective behind the buyback, the company said that L&T is currently following an asset-light business model, hence any significant investments which may utilise the cash is not envisaged.
The board of directors of the company at its meeting held on August 23, "approved buyback of fully paid-up equity Shares of face value of Rs 2...at a price not exceeding Rs 1500 per equity share payable (final price to be decided by the Buyback Committee) in cash for an aggregate consideration not exceeding R 9,000 crore," the company said in a filing to BSE.
The maximum amount required for buyback, it said, will not exceed Rs 9,000 crore, it added.
The voting will start from September 2 and will continue till October 1.
In a stock exchange filing, Larsen & Toubro had earlier said that its board has approved the proposal to buy back six crore shares at a maximum price of Rs 1,500 apiece.
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