Oil India turns ex-date for share buyback; stock down 7%

The stock slipped 7% to Rs 188 on the BSE in an otherwise firm market as it turned ex-date for the proposed buy-back of 50.5 million shares at Rs 215 per share.

Shares of Oil India have slipped 7% to Rs 188 per share on the BSE in an otherwise firm market as it turned ex-date for the proposed buy-back.

The board of directors of Oil India in their meeting held on November 19, 2018, has fixed Monday, December 3, 2018, as the record date to determine the entitlement and names of the shareholders who are eligible to participate in the buyback; and the shareholders to whom the letter of offer and tender form will be delivered in relation to the buyback.

Oil India will buy back 50.5 million of its shares for a little over Rs 10.85 billion as part of the government’s push to cash-rich public sector units (PSUs) to part with their surplus either by paying higher dividends or through share buybacks, to help meet revenue targets.

The company set a share buyback price at Rs 215 per share through a tender offer. The nation’s second large oil explorer has a little less than Rs 200 billion of reserves.

At 10:20 am; Oil India was trading 6% lower at Rs 191 on the BSE, as compared to 0.54% rise in the S&P BSE Sensex. The stock was trading close to its 52-week low price of Rs 180 touched on October 10, 2018, in intra-day trade. The trading volumes on the counter nearly doubled with a combined 2.52 million shares changed hands on the BSE and NSE so far.