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L & T reward for the primary time! 9000 crore to be spent on this scheme – Larsen Toubro Board approves share buyback Rs 9000 crore – jj
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L & T reward for the primary time! 9000 crore to be spent on this scheme – Larsen Toubro Board approves share buyback Rs 9000 crore

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L & T gave this gift for the first time! 9000 crores to be spent on this

L & T gave this gift for the first time! 9000 crores to be spent on this

News18Hindi

Updated: August 23, 2018, 12:42 PM IST

Construction & Engineering Company Larsen & Toubro Limited (Larsen & Toubro) The Board of Approval has approved the buyback of 60 million shares. The company will spend a total of 9000 crores on this share buyback. Let me tell you that L & T has done this for the first time. Share buyback means that when a company buys its own shares from investors, it is called buyback. Experts say that if you have invested for a long period, you should not sell your shares just to earn some money in buyback. Should participate in buyback only when you find that the share price of the company's stock is overvalued. And you also feel that the company does not have much growth opportunities.

What happens to buyback-When a company buys its own shares from investors, it is called buyback. You can also consider it an opposite of the IPO. After the buyback process is complete, the survival of these shares ceases. For buyback, mainly two methods-tender offers or open market is used.

Indians are selling this favored company for 14 thousand crores business, know what is compulsion!
Why companies do buyback- The company decides to buyback for a variety of reasons. The biggest reason is the extra cash in the company's balance sheet. The company is not considered to have too much cash. It is believed that the company is unable to use its cash. The company uses its extra cash through share buyback.

What is the process Firstly the board of the company approves the buyback offer. After this, the company declares the program for buyback. It mentions the duration of record date and buyback. A record date means that the investors who have shares of the company till that day will be able to participate in the buyback. (Read also – 32 crores for this 'employee' instead of holidays)

Buyback effect on stock- Buyback has a number of impact on the company and its stock. Firstly, the number of shares of the company in the stock market decreases for purchase and distribution. This increases income per share (EPS). PE of the share is also increased. One thing is to keep in mind that even though many data related to stock changes due to buyback, there is no fundamental change in the company's business.What is the meaning of the investor- Should sell your shares in a buyback or not? This question is in the mind of many investors. Experts say that if you have invested for a long period, you should not sell your shares just to earn some money in buyback. Should participate in buyback only when you find that the share price of the company's stock is overvalued. And you also feel that the company does not have much growth opportunities.

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