Coal India board approves shares buyback offer

Coal India on Monday said its board of directors has approved buyback proposal of over 4.46 crore shares at a price of Rs 235 a piece for an aggregate consideration not exceeding Rs 1,050 crore. "The board of directors at its meeting held on February 4 approved the buyback proposal for purchase by the company of its own fully own equity shares not exceeding 4,46, 80,850 crore shares (representing 0.72 per cent of total outstanding number of equity shares in the paid up share capital of the company) at a price of Rs 235 per equity share payable in cash for an aggregate consideration not exceeding Rs 1,050 crore," it said in a regulatory filing.

According to it, the central government holds 72.908 per cent stake in the company while the public holds the rest. The miner had earlier announced that its three subsidiaries - Mahanadi Coalfields, South Eastern Coalfields and Northern Coalfields - proposed to buyback their equity shares aggregating Rs 1,065 crore (Rs 355 crore each).

The equity shares, proposed to be bought back by MCL, SECL and NCL represent 6.27 per cent, 7.453 per cent and 7.59 per cent of their paid-up capital, respectively. Shares of Coal India on Monday closed at Rs 222.05, down by 1.2 points or 0.54 per cent, on the BSE.