L&T rises 3% as board approves share buyback proposal

Shares of Larsen & Toubro (L&T) today rose nearly three per cent after its board approved a proposal to buy back six crore shares amounting to Rs 9,000 crore to reward its shareholders.

The stock had opened on a bullish note at Rs 1,326.10 and shot up 2.8 per cent to touch the day's high of Rs 1,359.20. The scrip is currently trading at Rs 1,359, up 2.79 per cent from the previous close.

At NSE, L&T scrip is currently quoting at Rs 1,358.55, a rise of 2.72 per cent from the previous close. It has touched a high of Rs 1,360.

In a filing to stock exchanges, L&T said its board has approved a proposal to buy back six crore shares at a maximum price of Rs 1,500 apiece, amounting to a total of Rs 9,000 crore.

This is L&T's first-ever share buyback proposal. The buyback size is 4.29 per cent of paid-up equity capital of the company.

This year, boards of many IT firms including TCS, HCL Technologies and Mphasis have approved proposals to buy back shares.