Coal India turns volatile in early trade

Coal India was down 0.37% to Rs 307.50 at 9:28 IST on BSE after the company said that one of its subsidiaries will buyback total shares worth around Rs 1200.19 crore from its shareholders.

Meanwhile, the BSE Sensex was up 64.89 points, or 0.25%, to 26,460.60.

On BSE, so far 13,000 shares were traded in the counter, compared with an average volume of 3.11 crore shares in the past one quarter. The stock rose 0.39% at the day's high of Rs 309.85. The stock fell 0.50% at the day's low of Rs 307.10. The stock hit a record high of Rs 447.25 on 5 August 2015. The stock hit a 52-week low of Rs 272.05 on 12 April 2016. The stock had outperformed the market over the past one month till 14 June 2016, rising 9.12% compared with 2.89% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 4.41% as against Sensex's 6.94% rise.

The large-cap PSU coal mining major has an equity capital of Rs 6316.36 crore. Face value per share is Rs 10.

Coal India announced after market hours yesterday, 14 June 2016, that the board of directors of its subsidiary, South Eastern Coalfields (SECL), approved the buyback of 8.46 lakh fully paid equity shares of face value of Rs 1000 each from the members of the company on a proportionate basis through tender offer representing 23.53% of the total number of equity shares in the paid-up share capital of the company. The shares will be bought back for an aggregate amount not exceeding Rs 1200.19 crore with maximum buyback size being upto 25% of the paid-up equity share capital and free reserves as on financial year ended 31 March 2016, at a buyback price of Rs 14,180.57 per share payable in cash.

Coal India announced after market hours on Monday, 13 June 2016, that the board of directors of Western Coalfields (WCL), a company's subsidiary, at its meeting held on 13 June 2016 approved buyback of 7.42 lakh fully paid equity shares, or 25% equity, of face value of Rs 1000 each from the members of WCL for an aggregate amount not exceeding Rs 789.30 crore. The shares will be purchased at Rs 10,626.73 each.

Coal India announced on Sunday, 12 June 2016, that two of its subsidiaries - Mahanadi Coalfields and Northern Coalfields - will buyback total shares worth around Rs 1978 crore from their shareholders.

The board of directors of Northern Coalfields (NGL) approved buyback of 4.01 lakh fully paid equity shares, or 22.62% equity, of face value of Rs 1000 each from the members of NGL on a proportionate basis through tender offer for an aggregate amount not exceeding Rs 948.72 crore. The shares will be purchased at Rs. 23,610.04 each.

The board of directors of Mahanadi Coalfields (MCL) approved buyback of 4.43 lakh fully paid equity shares, or 23.82% equity, of face value of Rs 1000 each from the members of MCL on a proportionate basis through tender offer for an aggregate amount not exceeding Rs 1028.77 crore. The shares will be purchased at Rs 23,171.89 each.

Coal India's consolidated net profit rose 0.2% to Rs 4247.93 crore on 0.7% decline in total income to Rs 22904.36 crore in Q4 March 2016 over Q4 March 2015.

Coal India is an organized state-owned coal mining corporate. The Government of India held 79.65% stake in Coal India (as per the shareholding pattern as on 31 March 2016).

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