Coal India drops after buyback announcement

Coal India has lost almost 2% to Rs 314.30 on the BSE after the company said its board approved buyback of shares at a price of Rs 335 per share.

The announcement was made after market hours yesterday, 11 July 2016. On BSE, so far 1.24 lakh shares were traded in the counter as against average daily volume of 3.73 lakh shares in the past two weeks.

The stock hit a high of Rs 322 and a low of Rs 313.50 so far during the day. The stock had hit a 52-week low of Rs 272.05 on 12 April 2016. The stock had hit a record high of Rs 447.25 on 5 August 2015.

Coal India announced that its board of directors at a meeting held yesterday, 11 July 2016, approved the buyback of equity shares not exceeding 10.89 crore shares of the company, from all the shareholders holding equity shares of the company as on record date on a proportionate basis through the tender offer route.

The buyback price was fixed at Rs 335 per share payable in cash for an aggregate consideration not exceeding Rs 3650 crore which is not exceeding 25% of the aggregate fully paid up share capital and free reserves of the company as per audited accounts of the company for the financial year ended 31 March 2016.