Larsen & Toubro Buyback 2023
Larsen & Toubro is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for over eight decades.
Company is engaged in core, high impact sectors of the economy and its integrated capabilities span the entire spectrum of ‘design to delivery’.
Every aspect of L&T’s businesses is characterised by professionalism and high standards of corporate governance. Sustainability is embedded into our long-term strategy for growth.
The Company’s manufacturing footprint extends across eight countries in addition to India. L&T has several international offices and a supply chain that extends around the globe
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Sep 12 2023 |
| Buyback Opening Date: | Sep 18 2023 |
| Buyback Closing Date: | Sep 25 2023 |
| Buyback Offer Amount: | ₹ 10,000 Cr. |
| Date of Board Meeting approving the proposal: | Jul 25 2023 |
| Date of Public Announcement: | Jul 25 2023 |
| Buyback Offer Size: | 2.22% |
| Buyback Number of Shares: | 3,12,50,000 |
| Price Type: | Tender Offer |
| FV: | 2 |
| Buyback Price: | ₹ 3200 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (in Cr) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales | 135,220 | 145,452 | 135,979 | 156,521 | 183,341 |
| Expenses | 112,354 | 120,899 | 112,519 | 132,195 | 156,561 |
| Operating Profit | 22,866 | 24,553 | 23,460 | 24,327 | 26,780 |
| OPM % | 17% | 17% | 17% | 16% | 15% |
| Other Income | 2,701 | 3,015 | 8,111 | 2,364 | 3,065 |
| Interest | 9,339 | 11,021 | 11,750 | 9,235 | 9,234 |
| Depreciation | 1,923 | 2,462 | 2,904 | 2,948 | 3,502 |
| Profit before tax | 14,305 | 14,086 | 16,918 | 14,508 | 17,109 |
| Tax % | 28% | 23% | 24% | 29% | 26% |
| Net Profit + | 10,217 | 10,894 | 12,921 | 10,419 | 12,531 |
| EPS in Rs | 63.48 | 68.02 | 82.47 | 61.7 | 74.5 |
| Dividend Payout % | 28% | 26% | 44% | 36% | 32% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,84,574 | 1,84,574 | 1,84,574 | 1,84,574 |
| No. of Shares Buyback | 20 | 31 | 46 | 62 |
| Buyback Profit | 4,460 | 6,913 | 10,258 | 13,826 |
| Profit% | 2.41% | 3.74% | 5.50% | 7.50% |
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Today I filed a complaint in SEBI against LT. Let’s see what SEBI says about updating the buyback price after the close of working hours.
Just to give you an update, my case is still pending with the officer in SCORES. Will let you know once it is disposed of.
TCS buyback board meeting 11 oct
Gopi ji, Adesh ji and Rohit Ji,
Thank you very much for the valuable guidance,
We juniors will be ever grateful for the support you are rendering.
Is what i am seeing seeing in my email true ? 100% accepted ? 🙂
16K Profit. Thanks to all the suggestion here and Big thanks to investorzone.in
Out of 100 shares 9 accepted. Thanks seniors for timely advise.
Now what is the amount I should show in next I T returns as income from buyback as this specific stock I bought in 2001.
Kindly advise.
Mr.Adhesh has stated in his comment below on 20/9/23 that the closing price on 31/1/2018 of LT was Rs 1439.7 which will be applicable for income tax purposes (calculation of LTCG).You may take this as cost of acquisition and calculate the buyback gain which will be Rs 16743/ and declare it as exempt income under the Schedule E I if you are filing your IT return. If a C A is filing ,leave the matter to him.
Please correct the figure above as 15843/
Link to the registrar portal to find acceptance:
https://kosmic.kfintech.com/karisma/buybackacceptancequeryv2.aspx
L&T should be available soon in the dropdown. (KFIN is slow it looks, brokers know already)
For me (in non-retail category) AR is 10.08%, as per contract note received by my broker.
Hi i had tendered 83 shares for buyback. Is acceptance ratio 100% for this too?
Your holdings will be considered under non retail Category and hence 100% AR is not applicable in this case.
ok..thanks..
100% AR in retail category
Got the contract note from Zerodha.
Congratulations to all
Best buyback
The payment schedule is also revised from 29th to 28th due to change in bank holiday.
LNT AR IS 100%
CONGRATULATIONS TO ALL
STATEMENT RECEIVED
After a long time, yet another great buyback in which 100% AR in the Retail Category. Congratulations to all the investors.
9 out of 100 accepted. Bill also received from my broker.
Thank you tarunji. Finally non retail AR we now now
Hi i had tendered 83 shares for buyback. Is acceptance ratio 100% for this too?
Actually I have 68 shares in my DPs and sale 2 share in the morning of 11th September, in the evenings on same day just bought again as market is bellow 2900.
Was Not any idea about LT declaration in the coming night that made my game worst.
After that I was hoping that LT price may be touch 3200 before buyback completion, but not happened.
I was not participated in buyback in above hope.
Nicely done 👍☺️
When will the funds be credited, I have to buy Siyaram silks so that I can tender them before 3rd oct
On 29th Sep, Friday
I checked with my broker. And he confirms that AR in retail is 100%
Which broker? Name please
Adesh ji,
Non retail AR please
When will the funds be credited, I have to buy Siyaram silks so that I can tender them before 3rd oct
On 29/9/23.
SS corporate securities p ltd
No idea till now. Will post as soon as I come to know sir
What’s the source to know about AR?
Officially following link is given in Letter of Offer issued by L&T
https://www.bseindia.com/xml-data/corpfiling/AttachLive/549eef93-be72-4153-9397-2c0fcd6fc640.pdf
On second page you will find the link (https://kosmic.kfintech.com/karisma/buybackofferv2.aspx) of Registrar (Kfintech). But data is not updated yet.
No body asks source when Umesh ji breaks the news!
*Lt buy back at 100%*🥳
Umesh ji, Any information on AR in respect of non retail category?
And non retail, any idea sir?
No data update on registrar website link so far. but someone mentioned it is 9.5%.
But can’t validate the source of info.
Thank you Adesh ji and Umesh ji for the amazing news. If true, this is going to be the best ever buyback gains in my life. Feel sorry for those who were unfortunate to be in the retail investors category by one/two shares because of the company’s unfortunate action. Remembering Rohit Ji with tons of gratitude for promptly pushing me in .
Retail 100% AR
Congratulations to all
Retail 100 percent
Congratulations to all the participants under retail category.
I goofed up and did not follow up in the last days before the record date and thereby my holding
in LT stood at 68 and consequently came under non retail category.
What’s the source to know about AR?
Officially following link is given in Letter of Offer issued by L&T
https://www.bseindia.com/xml-data/corpfiling/AttachLive/549eef93-be72-4153-9397-2c0fcd6fc640.pdf
On second page you will find the link (https://kosmic.kfintech.com/karisma/buybackofferv2.aspx) of Registrar (Kfintech). But data is not updated yet.
Surprise
no one expected. Just two week earlier Every body were guessing that it could be 45 to 60 %
https://www.thehindubusinessline.com/companies/lts-share-buyback-subscribed-72-times/article67345199.ece
This seems to be the latest update available.
As per this final tendering was about 22 crore shares against 3 crore approx on offer. Retail about 2.5 crores out of this.
So as per this, retail will get about one out of 4 share tendered ( assuming some appl are rejected or some overapplied their total holding).
The non retail category should get 1:7 or 1:8 or so
There is a caveat though, indv investors may include those holding above 68 shares as well. Because another analysis states that about 10 lac retail investors existed, and only 2 lacs have submitted applications. In which case there may still be a very high acceptance in retail and could be as high as 80-90%. Will update if I get more clarity
Many investors sold their holding after record day assuming to buy later on.
But sudden spike didn’t give chance to re Secondly many finished holding 68+ instruments.looks quite acheivable
90-95%
Adeshji
The article in the Hindu
Stated that around 12% were from individual investors
So acceptance should be around 40%
Ashish ji. Individual investors may not mean only retail category. This my feeling is that the acceptance ratio for retail will be much higher than 40%
As per report published in news article, there were about 10.60 lacs retail investors holding about 1.97 crore shares (with less than 68 shares ) and to whom tender forms issued. In the tender process only 2.17 lacs applicants tendered their shares. Considering out of 2.17 total applicant, 2.00 lacs applicants as retail applicants, then only about 20 percent retail applicants has participated in the buyback process. Considering this there will be 80 to100 percent retail category acceptance. I am sure about 100 percent acceptance ratio.
Thank you Adesh ji for your research and late night posts. I appreciate your passion,involvement and commitment. Good luck to you and every fellow investors.
Do we have any better insights on the possible acceptance for general and small investor categories? Request the senior experts here to advise please.
Out of over 10,00,000 retail investor on record date, only less than 2,00,000 has taken part in buyback. As per above figure, 100.00 percent acceptance in retail category is expected.
As per reports, retail AR is likely to be almost 100%. This is because though the oversubscription is 8-10 times, in retail , it is about 20% of those who were entitled.
Though some other reports point out about 3 times oversubscription even in retail category.
I have.modified my comments above. Pls see my latest post
Gopi ji, Adesh ji Rohit ji thank you for your kind advise and enlightening me, i have tendered total quantity of L&T as suggested by you.
Need a suggestion again actually I need money to the tune of Rs 10L for my sons education and I intend to sell following stocks which i bought before 2018.
1) Trent 800
2) Aurobindo Pharma 300
3) a) Jubilant Life Sciences 1000
b) Jubilant Ingrevia 1000
4) ICICI Bank 100
I am sorry for taking too much of liberty / time in seeking advise on above stocks.
With warm regards,
All these shares are very good. Really difficult to say which ones to sell. If I required money, and had no other choice, I would either-
a. Sell a few of each.
b. Alternatively look up sites like trendlyne and see some research reports of these cos there, and make some evaluation and then sell maybe the worst of them ( though can’t easily make that analysis)
Dear experts, what can be the Acceptance Ratio (AR) in Retail category ?
75 to 80 %
Gopi ji, thank you for kind advise.
Dear seniors members
I have bought L&T shares in the year2001, now I have 100 Shares recd. mail for 5Nos as ER ,but I will be tendering all100.
Unaccepted shares if I sell in market will the LTCG applicable if so what percentage as I purchased them in 2001.
Experts kindly advise.
Congratulations, Mr. Rao for the massive LTCG you have achieved. You must tender all the 100 shares and hope for maximum possible acceptance. The gain on buyback is income tax exempt. LTCG is tax exempt upto 1lac per year. Sum above 1 lac is taxable @ 10% . Since your purchase was in 2001, the provision of grandfathering is admissible, which means price on January 2018 or so will be treated as the cost of acquisition . You may spread your sale in such a way that you won’t gain more than 1 lac per year.
Mr Gopi’s advise is absolutely correct. My 2 cents on this is- if you have held since 2001, why do you sell even now, except in buyback. Because I feel with payback plans L&T has till 2026, and the good company it is, and since you are a long term holder, don’t sell the rest. And if you still choose to sell, the value on cutoff date of grandfathering was about 1439.70 on 31.1.18, so any gain above that price will attract 10% ltcg
Thank you Adesh ji for your considered views. For determining Capital Gains for Income tax purposes, the accounting system being followed is First in First Out. Mr. Rao can book profit ( LTCG) which is tax exempt as stated earlier and buy and hold the same LT shares on the next day/ subsequent days on dip and hope to participate in buyback/other beneficial corporate actions which will arrive in future. He need not hold on to the same number of shares for anymore for anything as per my humble view.
If you have any holding on which you have LTCL then you should sell it as well so the LTCG from LT can be setoff against that script. You can buy the same script again on the next day and continue to have it for the long term. This is just a way around for tax saving which is 100% legitimate.
Absolutely right. Infact towards the end of the financial year every prudent investor should do loss harvesting to reduce tax liability,both Long Term and Short Term as applicable .
Hello Adesh ji,
Thank you for sharing your views.
Are you suggesting next buyback in one to two years would be at much higher price – say 4000/4500? And bigger in size so may be better acceptance also?
Regards
Dhiraj
Adesh ji, thanks for the information about the closing price of L T on 31/1/18, after that date Income tax was introduced for LTCG. If the closing price of LT was 1439…/ on that day, the F V should have been ₹10/ which now stands @ ₹2/. Obviously the cost of acquisition will get adjusted by almost one fifth of 1439/ . Sorry for the confusion.
I also have 100 shared of L&T accumulated over last 8-9 years. However, I got an email with Entitlement of just 1 share. Why would two investors holding same quantity get a different entitlement quantity? Is this possible? If yes, why?
Please advise.
Request Mr.Rao to clarify.
Zerodha portal is ready and started taking buyback orders for LT.
Got Entitlement mail of 15 shares out of my holding of 66 shares. Best thing about this buyback is that this will give me a Tax Free exit to my 3 years old investment in this stock. I have Been holding 55 shares since 16th Oct 2020 from 890 price level seen post covid crash. Enjoyed Rs. 96 dividend and 250% gains in this share. Hoping for 100% Acceptance ratio. At 100% acceptance ratio i will book a cool Rs. 1.35 Lacs tax free gains on my holdings.
i bought 68 shares on 11 th and sold 2 shares on 12. so end of day my holding was 66. still i got mail regarding 1 out of 68. why ?
i got mail regarding block for early pay in. so this blocked shares should not be reported as holding, otherwise in this scenario they should actually debit shares from account.
complaint lodged with NSDL, SEBI,COMPANY. REGISTRAR IN THE MORNING TODAY.
BUT NO REPLY.
I THINK NOTHIG WILL HAPPEN. NO JUSTICE TO POOR RETAIL INVESTOR.
HERE EX DATE AND RECORD DATE IS SAME THAT IS 12TH.
SO MY POINT IF I SOLD MY ALL SHARES ON 12TH ,THEN ALSO I WILL BE ELIGIBLE FOR BUY BACK DEPENDING UPON MY HOLDING .
Please stop complaining that Retail Investor wont get any justice and other things. You don’t have the basic working knowledge. In India, Stocks are settled on T+1 basis. i.e. if you sold shares on 12th then it will get debited out of your Demat account on 13th EOD. Thus, you were still holding 68 shares on the Record date EOD i.e. 12th. Little more study on workings of the Market will be beneficial. Check your mail from the Depository Participant first when 2 shares of L&T were debited from your account, i bet it was 13th. For Future don’t wait till last minute and keep a buffer of 1-2 Days.
Please note that there are 2 levels, your broker level and demat level (CDSL / NDL). While early payin etc are enabled by broker to basically help in trading.
12th was the record date and EX- date, so actually shares sold or bought on 12th would be credited / debited on 13th by Depository.
Also with Ex- date concept, all the rates arrangement is done for e.g. for bonus, dividend etc, So if you sold your shares on 12th, you are holder of shares on 12th also.
Good ~25% AR for retail, considering the recent surge, it appears to be a good chance of 80-100% . Also it is possible the market price raises up to 3100 or above.
It may be a Typographical error: It should be 25% ER not 25% AR.
Yes SRK ji, thanks for correcting. Nearly 25% ER for retail…
i bought 68 shares on 11 th and sold 2 shares on 12. so end of day my holding was 66. still i got mail regarding 1 out of 68. why ?
i got mail regarding block for early pay in. so this blocked shares should not be reported as holding, otherwise in this scenario they should actually debit shares from account.
complaint lodged with NSDL, SEBI,COMPANY. REGISTRAR IN THE MORNING TODAY.
BUT NO REPLY.
I THINK NOTHIG WILL HAPPEN. NO JUSTICE TO POOR RETAIL INVESTOR.
HERE EX DATE AND RECORD DATE IS SAME THAT IS 12TH.
SO MY POINT IF I SOLD MY ALL SHARES ON 12TH ,THEN ALSO I WILL BE ELIGIBLE FOR BUY BACK DEPENDING UPON MY HOLDING .
I had the same issue. Thanks and gratitude to Rohit Ji, I transferred 3 no.of my holdings to my son on 12/9/23 as gift through off market transaction which was deducted from my Demat account by CDSL at about 7.30 pm. I am very happy that my holdings are shown as 65 nos and most importantly ER is 15 nos. Otherwise it would have been a miserable one only as is in Hemal’s case . I repeatedly express my gratitude to Rohit ji for the timely guidance.
Reserve cat — 24%
General Cat — 1.6%
LARSEN & TOUBRO Buyback Schedule 👍
Retail Entitlement Ratio : 09 Shares against 38 Share (23.71%)
Buyback Dates : 18 – 25 September
Date of Intimation of Acceptance Ratio : 27 September
Date of Receipt of Payment / Settlement of Bids : 29 September
Thank you very much for your kind update.
Hi Aman
I have holding less than 2 lakh why only one share is accepted.could you please explain
Just my POV :
Many retaiers will be not counted in retail category due to sudden jump just before the buyback record date. This might result in higher acceptance ratio for retailers. Senior board members pls advice what do you think about this ?
Infact revision in prices led to this..I wrote to the company and also to sebi as to why as per rule, the revised price was not announced a working day in advance. A night before, when they announce, we don’t get time to adjust our folio and it goes against the spirit of the regulations.
Nice. I am also going to complain to the Company CS, the Buyback Committee, and the Independent directors of the company against this. It is against the spirit of the market and the safeguard provided by SEBI to the small shareholders.
Will file a formal complaint to SEBI as well after getting a response from the management of LT.
I have raised the complaint. Let’s see what they say. They have increased the price after the closing of the market hours as well as working hours of the day which is not justified at all. Although, I do not have any shares of LT.
i bought 68 shares on 11 th and sold 2 shares on 12. so end of day my holding was 66. still i got mail regarding 1 out of 68. why ?
i got mail regarding block for early pay in. so this blocked shares should not be reported as holding, otherwise in this scenario they should actually debit shares from account.
complaint lodged with NSDL, SEBI,COMPANY. REGISTRAR IN THE MORNING TODAY.
BUT NO REPLY.
I THINK NOTHIG WILL HAPPEN. NO JUSTICE TO POOR RETAIL INVESTOR.
HERE EX DATE AND RECORD DATE IS SAME THAT IS 12TH.
SO MY POINT IF I SOLD MY ALL SHARES ON 12TH ,THEN ALSO I WILL BE ELIGIBLE FOR BUY BACK DEPENDING UPON MY HOLDING .
Yes,is the answer to the last paragraph of the query. I feel sorry for the mess you have got into. Such a well reputed company should have acted more responsibly. Siyaram Silk Mills have raised the price a day before the record date. That’s the minimum any company should do in situations like this. I don’t think complaining will be of any use.
First time 100% AR for me :))
I haven’t tried offline transfer ever but I am going to do it. Check this article
https://support.zerodha.com/category/your-zerodha-account/transfer-of-shares-and-conversion-of-shares/transfer-securities/articles/transfer-shares-from-my-zerodha-account-using-cdsl-easiest#:~:text=This%20verification%20is%20necessary%20because,processed%20on%20the%20same%20day.
It will help a lot of people to claim the retail category in buyback as they mentioned the share gets transferred on the same day. Sorry for not sharing it earlier as I think there must be some facility to transfer shares from one demat to another demat without a broker
Rohit Ji, I have sold 6 shares yesterday and transfered 3 which was deducted from my account by CDSL at 7.35 pm. Now my total holding is only 59.Can I buy 6 shares before the tender date and tender for buyback?
Yes, you can buy it anytime and tender during buyback.
Thank you for your prompt response and support. I will buy it on further dip.
Your suggestion and guidance worked beautifully well in my case, Rohit Ji. My holding is shown as 65 and ER is 15. I once again express my gratitude 🙏. I will buy 6 more to make it upto 65.
Pls ignore my request for source of 67 share. I did not realise that the closing rate for 12th and not 11th will be applicable.
What a solid good up I did?
Ha,ha all of us are entitled to goof up once in a while. Let us try not to repeat again 😜
Yes agreed.
And to top it, on 12th I even bought some extra shares to offset the buyback shares being tendered in future. So I bought about 75 shares across my folios ar about 2980-2990. And now barring one folio, all have come under non retail. Anyway, now will retain them and hope for the best.
Can anyone pls confirm the source that retail category will be 67 shares or less?
Do post that link.
Very unfortunate since I sold 2 to make it 68 shares and still will be ineligible.
Rs.2944.10 is the closing price at the Stock Exchange,( NSE) where the transactions are comparatively higher than the other exchanges on the Record Date. Hence,
Rs. 200000/Rs.2944.10=67.93shares i.e., less than 68 shares
Hope it is clear. That’s the ruling position. I don’t remember the rule number. If you have patience to go through the previous buyback pages, you will get the ruling position.
As per Letter of offer
All Eligible Shareholders holding not more than 67 Equity Shares as on the Record Date
are classified as ‘Small Shareholders’ for the purpose of the Buyback.
News paper publication specifies the record date as 12.09 as annonced earlier.
SRK ji & Other members are bang on their initial estimate..
67 is the nos for qualifying as maximum shares for small holder.
Sumit ji,
Thank you very much for your kind words. We are well aware that we cannot stand anywhere before your knowledgeable, experienced and unmatched intelligent views. I always admire your posts. I am 65 and I don’t know yours to assess whether I can offer prayers/ blessings. Anyway, God blesses you with all the best. Thank you once again for your kindness.
Should it not be 68 shares
No, you could have held only 67 in your portfolio because today’s closing price of ₹ 2944.1 if multipled with 68 will be more than 2 lacs and hence you get tossed out of the orbit of retail investors category 😣 If interested please see the chat between me and Rohit ji below for more details.
Sir. Can you specify your source for this information
In money control forum, some one posted that LT has revised ex date as 18.09. Is it true? Any body any idea?
Please don’t believe on such rumors.
As per the tender route buyback policy, company has right to revise the buyback price till just one day before the record date depending upon the share price and market conditions.
Also refer the orginal notification from BSE
https://www.bseindia.com/xml-data/corpfiling/AttachLive/efa6e0d7-20fb-40ae-a455-6716f0673d77.pdf
Another very useful information. Thank you Vikram ji.
Has it been announced when tender opens? I tried to download the latest release from the LT investor website but it isn’t working for some reason.
I have 68 share of larsen.today is record date.
If close is above 2941 i will not be eligible in retail catogory.so if i sell 3 share today and keep 65 share will i eligible for retail catogery??
Sorry to state that your position cannot be considered under Retail Category. Please be positive and don’t be upset.
Anybody using prostocks or ventura
Has anyone done any research on the likely Acceptance ratio in retail category
https://www.livemint.com/market/stock-market-news/lt-buyback-price-record-date-size-acceptance-ratio-other-details-should-you-participate/amp-11690605995981.html
This report says 35% likely AR
The price was increased to Rs 3,200 today at 09:10 PM but I sold today at 03:25 PM in a loss of 0.20% as I do not want to take the risk. I was expecting a new buyback price between Rs 3,300 to Rs 3,500.
Hello Rohit ji, I think you have sold shares excess of 67 or 68 to remain in small share holder category… So with increase in buyback price, it remains same, rather you would get more money in retained shares.
Have I understood it correctly?
Sorry for not being clear in my last message. I was unable to buy LT due to a shortage of funds, so I sold Siyaram Silk after booking a decent profit and bought LT on 08th Sep in the hope the buyback price would increase on Monday but exit before market close as I do not want to take risk.
Sumit ji, and dear members,I am holding 68 shares right now. Since the record date is today,(12/9/23) can I be certain that I will be in the retail investors category. If I sell 6 nos today will it make any difference?
Gopi ji if L and T close below 2941. You will be in the Retail category. As per my experience, Selling stocks today won’t change the number of stocks you hold on the record date. It had to be done by yesterday (Experienced in PEL). Try your luck by selling a few stocks out of 68 today.
Bad luck. To qualify for the retail category the price of LT must close below 2941 as mentioned by Pavan. A way around this is to give offline delivery today from your demat to another demat and make sure the share transfer will get processed by the end of day.
Thank you Rohit ji. Transfer took more than 2 days when I tried last week.
Which broker you have?
Thank you. I sold 6 and am holding 62 as suggested by you. I will be disappointed if I happen to be out of retail investors category. This is the only time I had held such a close number. Never again.
Zerodha is my broker. Trying to transfer 3 nos to my son.
Don’t worry, Gopiji, it may be a blessing in disguise… May be the market price would touch 3300-3500 after the buy back completion…
Thank you Sumit ji. If you suggest,I will buy again on dip.I can hold for long term.
Thank you Rohit ji for your prompt and valuable suggestion. I successfully gifted 3 LT shares to my son. CDSL just smsed to me that 3 nos.of LT has been deducted from my Demat account. But for you, I would not have even tried. Good to have you around
Great! Hope you will qualify under retail investor 🙂
It won’t matter whether I qualify or not much, anymore because I used the available options suggested by Pavan ji and you. Never give up with out trying continue to be my motto in life. Thank you Rohit ji for being one of my favourites
Final Buyback Price is 3200
Any news @revision of price/date?
Yes 3200
I lost out on a golden opportunity here
I thought price has already run up quite a lot and won’t go up now and would buy on Friday
I have limited funds and I have exposure to ipo also and require funds for that
Here the big order news came in and it went to 2900
Now it doesn’t make much sense to buy at 2900 and tender at 3k
The price revision I am not sure
Fellow investors
What do you think
Should I play here for 5% gains
Do you think the share price will go down post buyback
What are your predictions and advise on this
I too don’t feel that the buyback price will be raised on Monday. The share price may not touch ₹ 3000/ either. L T is a portfolio stock and no harm in buying as the recent price rise is due to the large orders as suggested by you and not due to the buyback.
Investors
Any advice or recommendation on this
L&T price is nearing the buyback price.
In these circumstances, if the company revised the buyback price ( as was done in case of BSE), does the record date changes or remains 12th sept, to determine eligibility.
The problem is that I hold 70 shares in each folio and will exceed 2 lac rs mkt value on record date. So should I seel some( 5 share in each folio) now just in case the company revised the price later.
Because otherwise there is no point in tendering these for buyback at 3000.
Pls advise.
I am in the same boat adesji
I would recommend selling 5 shares and buy from another account if possible
Else sell 4-5 share
And reduce your holding to 65-66
And tendering at 3k still makes sense because you would save 10-15% on tax
In any case I would suggest reducing holding to 65-66 to be safe in both the cases
If company increases buyback price, great
If not you still have the option to tender your shares and have a higher acceptance
If you are dead sure that at 3k you won’t tender, then you can wait for company’s announcement, should be out latest by Monday and then act accordingly
Quite right. I have decided to wait for Monday. Yes, I think selling 4 shares on each account may be worth it in case no news comes.
In the worst case, buyback these 4 shares in each account on Tuesday ( all my demat accts are having this share so can’t swap the same day)
Finally I sold 2 shares in each account yday to reduce my holding to 68 shares per folio. So as to keep it within Retail category for buyback.
Now with increased buyback price to 3200, will explore buying today about 35 shares in each folio so as to maintain my holding post buyback to the same number ( expecting ABT 50% shares to be accepted in buyback). Will update if I do so today
I too sold 3 shares to make it 67
I wanted to know why are you buying 35 more now
What would be the benefit
The idea was to keep the same number of shares post buyback as before buyback. And take advantage of tax free buyback
Should we apply here. price is already 2800. AR may be 20-30% max . Experts please advice
It seems it will cross buy back price before record date, may be on monday.
Record Date announced : 12 September
Thank you Mohsin ji for your prompt update. Hope FDC,KRBL and PEL will make the payment before 10/9/23 for buying more shares of LT.
Payment of PEL,FDC,KRBL and Indiamart will receive betweem 12-14 Sept until unless process complete before schedule.
Last date to buy LT is 11th Sept for eligibility of Larsen.
If they follow guidelines at-last they pay on 14th September.
Hope they do earlier 3-4 days.
For KRBL N PEL, the last date for settlement of the bids is 13/9/2023.
When is the record date for L&T buyback?
Yet to be fixed and announcement made. Will appear in this zone in the relevant column when announced.
What will be the Acceptance Ratio for L&T?
I think, it will be atleast 50% for Retails.
Your views please……
If the price keeps increasing
For sure it would be around 40-50%
If market corrects due to panic selling or any adverse event
It will go down
I feel L&T is a portfolio stock so it can be bought at these levels
5% gains within a month a good deal co aidering how safe it is
Yes, I too feel so
A must have in the portfolio of every long term invester.
Where to get the latest quarter share distribution pattern wrt to number of share like (1-200 share held by %)
hello sumitji, srk ji
do u have any idea when lnt will decide abt record date?wat will be expected record date as i want to participate in PEL buyback, i want to adjust my funds accordingly…
Company announce record around 29 August.
I think record date around 7-9 September
thanks mohsinji for ur reply
How abt strategy for 12 – 13 demat accounts i hold…
Selling 2 lots septmber and buyin 3 lots septmbr … in this way i will hedge by 66 per holding and balance 33 i am expectn will gve in buyback
Neeraj sir please explain about reporting buyback profit under section 10(34A) in ITR 2 for AY23-24?
Hi can some1 tell the expected er and ar in l&t buyback ?
I am expecting close to 25 per ar
ER : 7-11% AR cant predict as who apply for bids or not. Whats price at tender period but approximately as u said 23-37%
I am not worried about A R . I had sold my L & T holdings a few years ago with the intention of buying again. So far I have not been able because it didn’t dip to the level I expected and, infact kept leaping up. Now having bought 66 nos I will hold on to the left overs until atleast I am able to sell at the purchase price as implied by Sumit ji if at all I have to sell.
As the CMP is increasing and the premium on Buyback Price over CMP is reducing, acceptance Ration can be much better and expected at this moment.
According to an article in mint acceptance ratio would be around 35%
As per my opinion, it is prudent to have 70 shares for the buyback purpose, if the price comes higher than 2857, for this no. then it would be nearly equal to Buyback price and therefore better to sell in open market..
Sumit ji,
I admire your kind views. Please continue to help the readers with your valuable suggestions. Thank you n all the best to you.
In one forum of money control somebody posted that record date for buy back is 15 Oct. Is it so?
Postal ballot results will be declared by 29th August. Record date will be announced post that
1. The total number of shares to be bought back in Larsen and Toubro is 3.33 crore.
2. The shares reserved for retail investors are approximately 50 lakh.
According to the Annual Report, the total shares held by shareholders up to 500 is 8.85 crore, and the total number of shareholders is 13.30 lakh. Therefore, the average number of shares held per shareholder is 66.
“Up to 500” means that some shareholders hold 1, 2, 3, up to 500 shares.
3. Assuming the average shareholder holds up to 66 shares and until the record date, the price does not exceed 3000 (which is the buyback price), the average holding value would be 1,98,000.
4. So, I am assuming that shareholders with a holding value of up to 2 lakh will total 8.85 crore… I am not considering and adding new shareholders who will be added after the announcement of the buyback.
5. The entitlement ratio, based on the above calculation, would be approximately 6%.
Please Note: The above calculation is based on certain assumptions, and the actual Annual Report will be different. This will become clear after the record date…
Umesh ji,
Thank you very much for your analytical view. Please keep posting your valuable views on each of the Buybacks.
Umeshji, You have made a very good analysis. Thanks for the same. I have purchased 100 shares at average price 2626 including brokerage tax etc. I think I will have to sell 34 shares to come under reserved catagory. Request to you and SRKji for guidance and advise.
Tarun Davda ji,
Yes, you have to sell not less than 32 shares., if not 33 shares. I am holding 67 shares in my account with the belief that the price of the share may not be above Rs.2985.05 by the closing time, on the Record Date, at the Stock Exchange, where the transactions are comparatively higher than the other exchanges.
67 shares at the cost price of Rs. 2577.30. Risk rate, as I believe, is very very low. Thank you.
Good helpful explanation.
I feel L&T is a type of high quality co where several shareholders may want to hold for long & not render any shares in BB.
Soo can AR increase from estimated one?
Just thinking,maybe experts here can guide. Comparison between LT and India mart. LT offer size is about 2.4, premium is about 17%, retail holding (across all category) is about 37%……Indiamart offer size is 2%, premium is about 33%, retail holding is about 18%. So which is better?
Old is gold is my comment to your query. I am not an expert. You should be the best judge in making decisions 😁
It appears to be a decent Buyback with 17% up from market price and would lead lower subscription and higher acceptance. I am happy and has distributed my equity into 3 accounts to each having Rs 2L limit… Rs 6 / -special dividend + Rs 24/- earlier is also Ok..
I always consider L&T for long term and any such event would lead to profit only as I would later buy at lower price…
Very kind of you, Sir. Your valuable views always help the readers to take a wise decision. Thank you, thank you very much once again for your generous attitude.
Buy back @3000/tender q
Total sum allocated for buy back is₹10000/crore.Special dividend is only ₹6/ per share.
Record date decision will be via postal ballot or direct?
Little bit disappointing Buyback Price. I have expected Rs. 3500/-. Some times it happens. No problem. All the best to the investors. Thank you.
Buyback Size :- 3,33,33,333
Buyback Price:- maximum Up to 3000 per share
Through Tender Route
Record Date :- After approval from shareholder
Is buying L & T now a good idea ?
Always a good idea. One of the best to have in your portfolio.
Does anyone know how to report buyback profit under section 10(34A) in ITR 2 for AY23-24? I tried finding but unsuccessful
I have been declaring it in Schedule Exempt Income by clicking add another since it was not one of the listed items under the head of Exempt Income.
Yes i know
Please explain in detail
will one share buyback stratagy work?
Yes
For JAMES Warren Tea…
Buyback schedule released, From 24 July to 28 July. ER – 15% for small and general… Surprising….. .Still expecting 100% AR
Sumit ji,
I am shocked with low ER. I expected ER of ~30%. Fingers crossed.
I have been declaring it in Schedule Exempt Income by clicking add another since it was not one of the listed items under the head of Exempt Income.
I go with your view Sumit ji. E R seems to have been carelessly stated with no proper calculation.
Control print buyback board meeting on 31 Jul 23
Thanks so much for posting this update.
Lets Hope L&T would do it properly this time and it would not be cancelled by SEBI like last time .
It appears to be a very good opportunity, as special dividend is also to be announced.
My guess is LT would opt for Special Dividend
As per the agenda of AGM it is both. The record data for Special dividend is also announced as August 2.
As per the new buyback rules, a draft letter of offer for approval is not required to be filed to SEBI so I do not think there will be any hiccups this time.
I think now the period STARTED for Bigger Stocks .
Isn’t it was