New Delhi: MOIL Limited has said on Tuesday that it has received an approval from its shareholders for the buyback of 14.26 percent shares. In a regulatory filing to the stock exchanges, MOIL said, "The shareholders of the Company have approved the Buyback by special resolution through postal ballot process." The Board of Directors of the PSU had approved a share buyback proposal worth Rs 693.77 crore at a meeting on November 10 this year.
"At the meeting of the board of directors ("Board") of the Company held on November 10, 2021, subject to the approval of the shareholders of the Company, unanimously approved a proposal for the buy-back of not exceeding 3,38,42,668 (Three Crore Thirty Eight Lac Forty Two Thousand Six Hundred Sixty Eight) equity shares of face value of Rs.10/- (Rupees Ten) each representing 14.26 percent of the total number of equity shares in the paid-up share capital of the Company from the shareholders of the Company…," said MOIL.
MOIL told the stock exchanges that both the Central government and Madhya Pradesh (MP) state government have expressed their intention to participate in the share buyback. "In terms of the Buyback Regulations, under the Tender Offer process, the Promoters of the Company have the option to participate in the Buy-back. In this regard, The President of India acting through Ministry of Steel, Government of India ("Government of India") vide their letter dated November 11, 2021 and The Governor of the State of Madhya Pradesh acting through the Mineral and Resource Department, Government of Madhya Pradesh ("The Government of Madhya Pradesh"), vide their letter dated November 18, 2021, have expressed their intention to participate in the Buy-back."
"The Government of India proposes to tender up to such number of equity shares that the minimum shareholding of Government of India post Buy-back remains at least 51.00 percent of the post Buy-back equity share capital of the Company in compliance with the Buy-back Regulations," said MOIL. On the other hand, the MP government has tendered 25 lakh equity shares, representing 1.053 percent of the total number of equity shares, for buyback, MOIL added. The Centre holds 53.84 percent stake in MOIL, while the MP government holds 5.40 percent stake.
"… we would like to inform you that Buyback Committee of the Board of Directors of the Company, at its meeting held today i.e. December 21, 2021 has fixed Friday, December 31, 2021 as Record Date for determining the entitlement and the names of the Eligible Shareholders I Beneficial Owners to whom the letter of offer will be sent and will be eligible to participate in the buyback…," said MOIL.
The government has been reaching out to a bunch of PSUs for share buybacks this fiscal year. NTPC, NMDC Ltd, Engineers India Ltd (EIL), KIOCL have already announced a share buyback earlier this year. DIPAM Secretary Tuhin Kanta Pandey had said in an interview that the Centre is encouraging PSUs to announce share buybacks if they have extra cash available after meeting their capex requirements.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)