INSUBCONTINENT EXCLUSIVE:
Engineering major Larsen Toubro (LT) Saturday said market regulator Sebi has denied permission for its Rs 9,000 crore share buyback offer
In a regulatory filing to stock exchanges, LT said Securities and Exchange Board of India (Sebi) has asked it not to proceed with buyback
"Since ratio of aggregate of secured and unsecured debts owed by company after buy-back (assuming full acceptance) would be more than twice
paid-up capital and free reserves of company based on consolidated financial statements", buyback offer is not in compliance with Companies
Act and Sebi norms, regulator said in a letter to company
LT 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 number of shares available in open market.
