Infrastructure giant Larsen & Toubro will pay out a special dividend of Rs 6 per share to its shareholders to honor the six decades of service by retiring Chairman A M Naik, as stated by the company's Chief Executive Officer & Managing Director, S N Subrahmanyan, in a letter to employees on July 31.
In his letter, Subrahmanyan said, "The Rs 6 dividend to shareholders is only a token of our affection, esteem, and, most importantly, gratitude towards A M Naik."
A M Naik was with L&T for 6 decades hence the company's board has decided to allot a dividend of Rs 1 per decade. Naik will be retiring from L&T on September 30, 2023.
Last week, L&T's Chief Financial Officer, R Shankar Raman, also stated in an exclusive interview with Moneycontrol that the special dividend approved by the company was to honor the retirement of A M Naik.
"He has always been a well-wisher of shareholders in terms of his thought process and actions. So we thought it'll be fitting that when he steps down, the shareholders have something to rejoice about, both in terms of the special dividend that we're giving at Rs 6 per share," Raman said.
The infrastructure major had declared a final dividend of Rs 24 per equity share of the face value of Rs 2 each for the year ended March 2023 and has now also announced a special dividend of Rs 6 per equity share while announcing its Q1FY2024 results last week.
The Indian engineering major has also announced that L&T's buyback size would be Rs 10,000 crore.
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