Pursuant to the changes in direct tax rates, buyback of shares by the companies gained a momentum to return money to shareholders. In the last couple of years, lot of listed companies opted for Buyback of its equity shares.
Generally, Buyback is opted by the Company when they feel intrinsic value of the company is above the trading price of its equity shares and hence, it will be accretive for the shareholders of the Company to reduce the paid-up number of equity shares. In this article, we will discuss two buybacks; one which is successfully over and other one which is proposed [re-proposed) after denial by the Securities Exchange Board of India (SEBI) in 2019.
Larsen & Toubro Limited (L&T)
On 25th July 2023, Board of Directors of India's one of the Infrastructure to Information Technology conglomerate, Larsen & Toubro Limited ("L&T") proposed a buyback of 3,33,33,333 equity shares of INR 2 each (representing 2.4% of the total paid-up capital) at a maximum price of up to INR 3000 per equity share via tender offer route through stock exchange mechanism. This entails cumulative outflow of INR 10,000 crore. If successful, this will be its first maiden Buyback by L&T. The current market price of L&T stands in the range of INR 25002600 per share.
Interestingly, in 2018, L&T attempted its first buyback which was rejected by SEBI on account of consolidated debt to paid up capital & free reserve ratio exceeding two times. The buyback offers that time was for 6,10,16,949 (representing 4.29% of that time paid-up equity shares) equity shares at price of INR 1475 per equity share aggregating to INR 9000 crore.
Diese Geschichte stammt aus der August 2023-Ausgabe von M & A Critique.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der August 2023-Ausgabe von M & A Critique.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
STRATEGIC MERGER SHALL CATAPAULT ASTER DM AS THE 3rd LARGEST HOSPITAL CHAIN IN INDIA
\"The resulting merged listed entity will be called Aster DM Quality Care Limited\"
STAMP DUTY EXEMPTION ON TRANSFER OF SHARES AS PART OF MERGER OF SUBSIDIARIES
A Writ Petition was filed by Ambuja Cements Limited (hereinafter \"the Petitioner\" or \"ACL\"), challenging the imposition of stamp duty on a merger order under Article 23 of Schedule IA of the Indian Stamp Act, 1899 by Collector of Stamps, Delhi (hereinafter \"Respondent\").
Acquisition of Plastic Injected Moulding Business from Sundaram Auto helps Pricol Group to a leadership position in Auto Component Sector
Recently, Sundaram Auto Components Limited, a wholly owned subsidiary of TVS Motor Company Limited approved the sale of its injection moulded plastic component solutions division to Pricol Precision Products Private Limited, a wholly owned subsidiary of Pricol Limited, as a going concern on a slump sale basis.
Simplifying the Corporate Structure - Merger of Inox Leasing and Financing with Gujarat Fluorochemicals
The board of Directors of some of Inox group entities have approved a Composite Scheme of Arrangement which provides for first demerger of Wind business of Inox Leasing and Finance Limited being a promoter group entity into Inox Holdings and Investments Limited and subsequently, merger of remaining Inox Leasing and Finance Limited into Gujarat Fluorochemicals Limited to provide direct holding of listed company to the promoters.
Cement Sector Consolidation Continues: Orient Cement to be acquired by Adani Group's Ambuja Cement
The shopping spree for the Adani group seems to be unstoppable. Recently, Adani group announced yet another acquisition in the cement space. This time it is Orient Cement Limited.
ITAT held that the reserve created on amalgamation is capital in nature and not taxable as perquisite
Recently, the Income Tax Appellate Tribunal, Mumbai held that the reserve created on amalgamation is capital in nature and not taxable as perquisite.
Mega Consolidation: SeQuent Scientific and Viyash Lifesciences backed by PE Carlyle Group
SeQuent Scientific Limited announced a merger which is expected to create a unique & differentiated platform with leading market position in Animal healthcare segment.
Raymond Group continues Segregation of its Business Verticals
After successful demerger of \"Lifestyle Business,\" Raymond Limited announced yet another restructuring to unlock further value for stakeholders.
Ultratech Cements adds India Cement in its shopping cart
India's Cement Industry is poised for consolidation. In recent past we have seen multiple large & small acquisitions in cement segment for consolidating positions.
Valor Estate Limited: "Diversification" to "Sepration" of Hospitality Business
“From investments in hospitality business, the demerger transaction will enable VEL to start its construction in hospitality”
