Larsen and Toubro

L & T-- Dividend, Bonus and AGM

Posted by : Leave it.

Larsen & Toubro Limited has informed the Exchange that the Board of Directors of the Company in its meeting held on May 29, 2008 have recommended a Dividend of Rs.15/- per share which together with the Special dividend of Rs.2/- per share declared on July 03, 2007,works out Rs.17/- per share for the year (previous year Rs.13/- per share).
2) Larsen & Toubro Limited has also informed the Exchange that the Board of Directors of the Company at its meeting held on May 29, 2008 has recommended for the approval of shareholders, the issue of bonus equity shares in the ratio of 1:1 (one bonus equity share of Rs.2 each for every equity share of Rs. 2 each held).

3. Now on 21-07-08, Larsen & Toubro Limited has informed the Exchange that the Annual General Meeting of the Company will be held on August 29, 2008.

The AGM will consider these two proposals. Just to get the approval of the share holders, for the aforesaid two proposals--dividend and bonus issue. If approved, they will take steps to pay the dividend immediately, with in 30 days as per listing rules.

4) Then they may announce a record date for the issue of bonus shares, to those who hold the shares on that record date.This date can be announced at the end of AGM or any time later. As the approval of shareholders is pending, the record date for bonus issue cannot be earlier to the date of AGM.
Many have raised these questions.
Hope some doubts are clarified, as I understand the position. I am wrong,
I am interested to get corrected.

V.Krishnamoorthy

Larsen&Tubro

Posted by : anassyed

I have purchsed 60 shares of L&T at Rs.2601/- on 25.05.2008.hold or sell?Pl.advise.

L & T-- Dividend, Bonus and AGM

Posted by : sheetla_akg

Dear Mr. Krishnamoorthy,

I appriciate the way you explain about dividend and bonus issue for a person who buy these share in cash and get them in his demat A/c.
Please also explain what will happen if I buy L & T august future before the ex-dividend date. Will I get dividend or How I will be compensated for the dividend amount.
thanks

L & T-- Dividend, Bonus and AGM

Posted by : Leave it.

To ja/jlv

Please note the following. Read carefully and get clarification from your friends, if needed as time is runing short.

Announcement: Larsen & Toubro Limited has informed the National Stock Exchange that the Register of Members and the Share Transfer Books of the Company will be closed from August 22, 2008 to August 29, 2008 (both days inclusive), in order to determine the Members entitled to receive the Final Dividend of Rs. 15/- per share for the year ended March 31, 2008. AGM of the Company is to be held on August 29, 2008. If you buy on 20-08-08 it is traded on Ex-dividend basis and you are not eligible for the dividend. Once the dividend and bonus proposals are passed the dividend is payable immediately. As per the listing norms, the co. can take 30 days to pay the same.

Hope I have given the required information. First dividend and then the bonus issue.

As for bonus proposed,and passed at the AGM, a record date will be announced . As a rule, it is mandatery-- At the AGM, where the related bonus proposal is to be consented and passed by the shareholders before the record date is tobe announced. Then only the company act.

So buy the shares before 19-08-08 if interested.You will get dividend first. If convenient make the payment of the cost, brokerage and taxes with little extra amount to the trading broker and get a statement of holding, even if you are charged by your D.P, to ensure that the purchased shares are included in your demat account well in time. In my personal view it would be always better to have it done a week in advance, as the shares are to become eligible for dividend and bonus .

Mind you, dividend becomes payable after AGM. But you must hold the share on the record date for bonus issue. That record date will be announced after the AGM and you mucst hold the shares till that date. Get the guidance from this board or from your trading broker.
15th August to 17th August are holidays. So try to complete the transaction by 14th August. and pay the Trading broker with out dues to claim your right.

V.Krishnamoorthy

short

Posted by : marketbear

Short larsen right now at around 2780, Stock is headed towards 2620 levels within short span of time

L

Posted by : kunchal

can you explain the basis for predicting these EPS

L & T-- Dividend, Bonus and AGM

Posted by : jlv

Dear Sir,,,
One of my advisor told me to enter in to this stock for long term....please any one can guide me should i enter to this stock and accumalate 5 shares at every dip...pls guide as i am small investo want to see my savings with good return,,,

jay

L & T-- Dividend, Bonus and AGM

Posted by : Leave it.

What will be the record date for the dividend declared?

Ans;The book closure starts from 22-08-08(friday). Apply T+2 formula, earlier to the commencement of the book closure. Accordingly all shares purchased on or before 19-08-08 (Tuesday) will be eligible for the dividend. From 20-08-08 it is traded on ex- dividend basis. Provided the buyer pays the entire bill to the credit of the trading broker, which is inclusive of cost, taxes and brokerages. On 21st evening the NSE will credit the shares in the trading broker's pool account and immediately the beneficiary account will have to be credited. This is the theory.

Advice; to complete the purchase, the clients should pay the broker a little more than the cost of the bill along with the order or the transaction can be well completed a week earlier. On no account the broker should be allowed to say that there is a short fall of the cost paid and hence the demat account is not credited. If the payments are made by cheques , you must take the clearing time also into account and make the payment twodays earlier.

If I am wrong in any points, please correct me.

V.Krishnamoorthy

L & T-- Dividend, Bonus and AGM

Posted by : ppsspp

Dear V. Krishnamoorthy
Excellent reply to divedend and bonus issues.I would like to know the valuations of L&T based on future earnings and demerger of companies like L&T Infotech and new businesses like Ship building and railways etc.
Hope you'll answer for this query too...Eagerly waiting for your reply

L & T-- Dividend, Bonus and AGM

Posted by : panni

U CAN ENTER THIS STOCK AT THIS LEVEL,AS THIS STOCK HAD REACHED 4500/-SINCE NOW BONUS IS DECLARED, THIS STOCK WILL ZOOM