INSUBCONTINENT EXCLUSIVE:
Shares of Larsen Toubro went off rails early Monday, plunging over 2 per cent, after market regulator Sebi turned down 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.
The scrip was trading 2 per cent down at Rs 1,291.85 at around 9.25 am while BSE Sensex went up 47 points, or 0.13 per
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 share, aggregating Rs 9,000 crore
CLSAGlobal brokerage CLSA believes that regulator is mistaken in looking at consolidated financials of LT
It thinks that board of engineering conglomerate may approve a one-time large dividend of Rs 53 per share this week
The brokerage house is bullish on LT with a target price of Rs 1,730
It recommended buying LT as company is a good proxy for domestic capex
JP MorganBuyback denial by Sebi on technicality of leverage comes as a negative surprise, according to JP Morgan
The global financial services firm believes that company may explore alternative methods to redistribute excess capital
NomuraNomura believes that cancellation of LT buyback poses risk to ROE estimates by around 150 basis points
considered standalone FY18 financial statements
and especially who took positions on this, Target Investing said in a note
They recommend sell for short and medium term holders
