Coal India Advances After Two subsidiaries Okay buyback proposals
Shares of Coal IndiaBSE 0.37 % advanced over 1 per cent in an otherwise weak trading session on Monday after the world’s largest coal producer said two of its subsidiaries, Mahanadi Coalfields and Northern Coalfields, have approved plans for share buyback.
The stock rose 1.15 per cent to hit a high of Rs 310.70 on BSE.
Mahanadi Coalfields (MCL) plans to buy back 4.43 lakh shares of face value Rs 1,000 each on an proportionate basis through a tender offer.The offer size represents 23.82 per cent of the paidup capital of the company. The maximum buyback size is Rs 1,028.77 crore, or up to 25 per cent of the paidup capital.
The BSE filing suggested the subsidiary is wholly-owned by the government. After the share buyback, the number of shares in the subsidiary will slip to 14,20,036 shares from 18,64,009 shares at present.
The board of Northern Coalfields has also approved buyback of 4,01,827 fullypaid equity shares of face value of Rs 1,000 each.
The total number of equity shares would not exceed 25 per cent of the paidup equity shares capital and free up reserves and the maximum buyback size is Rs 948.72 crore. This company is also full owned by the government.