Oil India Ltd will buyback a total of 5.04 crore equity shares for a capital of over R. 1,085 crore as a government of India push for PSUs to part away with their surplus either by buybacks or paying dividends.
In a regulatory filing, OIL said its board had approved buyback of shares at an aggregate of no more than 10% of the fully paid-up equity share capital and free reserves of the company.
The board approved "the buyback by the company of its fully paid-up equity shares of Rs 10 each not exceeding 5.05 crore equity shares (representing about 4.45% of the total number of equity shares in the paid-up share capital of the company) at a price of Rs 215 per equity share payable in cash for an aggregate consideration not exceeding Rs 1,085.72 crore," it said.
The company's surplus reserves amount to less than Rs. 20,000 crore. On Thursday, the scrip of OIL closed at Rs. 218.78 on the BSE. While it was a trading holiday on Friday due to Guru Nanak Jayanti.
Of the total divestment target, through the buybacks of PSU firms, the government target a total mop-up of some Rs. 5,000 crore.