State-owned NHPC today said November 8 has been set as the record date for determining eligible shareholders for the proposed buyback of shares worth over Rs 2,367 crore.
The buyback move would help the central government, NHPC's largest shareholder, to raise funds by tendering shares in the company.
Going by estimates, government is expected to get about Rs 2,000 crore from the NHPC buyback programme.
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In a regulatory filing, the hydro power producer said it has fixed "November 8, 2013 as record date for the purpose of determination of eligible shareholders for buy back of equity shares".
The maximum amount of over Rs 2,367 crore required for the buyback would be garnered from cash and/or fixed deposits of the company lying with the banks.
Since the government holds 86.36% stake in NHPC, buyback of shares on proportional basis would mean government getting about Rs 2,000 crore.
The maximum buyback quantity would represent 10% of the total number of shares in the paid-up equity capital of the company.
Shares would be bought back at a price of Rs 19.25 per piece.
"The maximum amount utilised for the buyback will not exceed 10% of the paid up equity share capital and free reserves of the company" as per audited accounts at the end of June 30, 2013.
"Buy back shall be on a proportionate basis from all the equity shareholders of the company through the 'Tender Offer' process...," NHPC said in another regulatory filing.
Shares of the company closed marginally lower at Rs 18.30 on the BSE.