Shares of L&T
recovered from their intraday low on Monday. The stock declined after markets regulator Sebi rejected
its Rs9,000cr share buyback plan citing compliance issues over its post-buyback debt-equity ratio.
The stock had lost ~3% in morning trade on Monday before recovering to trade marginally down.
The company announced that Sebi has advised the firm against proceeding with the share buyback.
Notably, Sebi canceled the buyback offer as the ratio of the aggregate of secured and unsecured debts owed by the company after the buyback (assuming full acceptance) would be more than twice the paid-up capital and free reserves of the company based on consolidated financial statements.
Larsen & Toubro (L&T) Ltd share price is currently at Rs1,316.85, down Rs1.4, or 0.11%, from its previous close of Rs1,318.25 on the BSE. The scrip opened at Rs1,275 and has touched a high and low of Rs1,336.45 and Rs1,275, respectively.
The BSE group 'A' stock of face value Rs2 has touched a 52-week high of Rs1,469.60 on February 1, 2018, and a 52-week low of Rs1,183.40 on October 23, 2018. Last one week high and low of the scrip stood at Rs1,369 and Rs1,313, respectively.
The company’s business mix spans across segments — from complex engineering, procurement, and construction (EPC) contracts in the hydrocarbon, process, metals, and cement sectors to the development of infrastructure projects in sectors like ports, roads, metro rail, and airports.