Meanwhile, the board of L&T approved issue of bonus shares to the holders of equity shares of the Company in the ratio of 1:2 (i.e. one bonus equity share of Rs 2 each for every two fully paid equity shares of Rs 2 each held). The board also recommended a dividend of Rs 21 per share (previous year Rs 18.25 per share), pre bonus, for the financial year 2016-17.
“The L&T management has guided for a strong double-digit growth in order inflows and revenue for FY2018. The management has announced a bonus issue in the ratio of 1:2 on the back of the strong business outlook,” Sharekhan said in stock update.
The brokerage firm revised rating on the stock to ‘Hold’ from ‘Buy’ due to the sharp run-up in the stock price. It has not considered the impact of equity dilution due to the bonus share announcement.
Thus far in the calendar year 2017, the stock had outperformed the market by surging 33% as compared to 17% rise in the S&P BSE Sensex till Monday. At 09:44 am; it was trading flat at Rs 1,789, after hitting low of Rs 1,769 on BSE in intra-day trade. A combined 2.18 million shares changed hands on the counter on BSE and NSE so far.