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Coal India Approves Buyback Of Up To Rs. 1,050 Crore; At Rs. 235/Share

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The board of Coal India on Monday approved share buyback of up to 4.47 crore shares, worth as much as Rs. 1,050 crore, at a price of Rs. 235 per share. In the year 2017, the Maharatna company had bought back 10.9 crore shares for Rs. 335 per share. In the issue, the government of India by tendering 8 crore shares, mopped up a total of Rs. 2,638 crore.

Coal India Approves Buyback Of Up To Rs. 1,050 Crore; At Rs. 235/Share

 

The buyback accounts for 0.72% of the overall outstanding equity shares. And the record date for ascertaining the eligibility of shareholders to participate in the tender offer has been fixed at February 15, 2019. Through the offer, the government is expected to mop up Rs. 766 crore.

The buyback offer will be completed in two steps, wherein the subsidiary companies of CIL, namely Mahanadi Coalfields Ltd, South Eastern Coalfields Ltd and Northern Coalfields Ltd will buy back their shares totaling to as much as Rs 355 crore each from the parent.

Subsequently, CIL will buyback shares of the company from the company shareholders using the free reserves of Rs. 1,065 crore.

At present, government's stake in the company totals to 72.9%, whereas FPIs account for 6% share in the company, insurance companies hold 12% and financial institutions/banks/MFs/Alternate Investment Funds hold another approximate 6 % in the company.

GoodReturns.in

Read more about: coal india buyback shares
Story first published: Tuesday, February 5, 2019, 10:33 [IST]
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