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Sebi denies permission for Larsen & Toubro's Rs 9,000-cr share buyback plan

A buyback reduces the number of shares available in the open market

Press Trust of India  |  New Delhi 

SEBI
Photo: Reuters

Engineering major (L&T) Saturday said market regulator has denied permission for its Rs 9,000 crore share buyback offer.

In a regulatory filing to stock exchanges, L&T said the (Sebi) has asked it not to proceed with the buyback.

"Since the ratio of the aggregate of secured and unsecured debts owed by the company after buy-back (assuming full acceptance) would be more than twice the paid-up capital and free reserves of the company based on consolidated financial statements", the buyback offer is not in compliance with the Companies Act and norms, the regulator said in a letter to the company.

L&T had proposed to buy back up to 6.1 crore shares from shareholders at a price of Rs 1,475 per equity share, aggregating to Rs 9,000 crore. The offer was open to those holding equity shares as on October 15.

A buyback reduces the number of shares available in the open market.

First Published: Sat, January 19 2019. 14:05 IST
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