PSU Disinvestment: Now it’s NMDC’s turn to announce share buyback
NMDC has announced share buyback worth of more than 13.12 crore at Rs 105 per share
Modi government is effectively tapping share buybacks by cash-rich PSUs for divestment of its stake
New Delhi: The central government is effectively tapping share buybacks by cash-rich PSUs for divestment of its stake. After KIOCL, NTPC and HPCL, now it's the turn of NMDC. India's largest iron ore mining PSU, NMDC Limited has announced the share buyback of more than 13.12 crore equity shares at Rs 105 each. The Board of Directors of NMDC Limited have approved the buy-back of not more than 13,12,43,809 shares, of the face value of Rs 1 each. These shares represent 4.29 percent of the fully paid-up equity shares.
In a regulatory filing to BSE, NMDC said, "The board approved a proposal for buyback of 13,12,43,809 fully paid-up equity shares of a face value of Re 1 each from the company's shareholders at a price of Rs 105 per equity share payable in cash."
"The buyback will be for an aggregate consideration not exceeding Rs 13,78,05,99,945 (offer size), representing 5% and 5.05% of the total fully paid-up equity share capital and free reserves, respectively," NMDC further added.
During the second quarter (Q2) ended on September 30, NMDC produced 56.37 lakh tonnes of iron ore, which is 13 percent higher, and its sales were at 66.02 lakh tonnes, which are 14 percent higher from the corresponding quarter previous year.
As of October 30, the government, which is the promoter of the company, holds 69.65 percent equity shares, and rest is held by Foreign Institutions, Non-Banking Institutions and public, etc. The Board of Directors of the NMDC have fixed November 23 record date for the buyback.
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