Select PSUs edge higher on reports of buyback proposal

Shares of four public sector undertakings viz. Coal India, National Aluminium Company, Bharat Heavy Electricals and NMDC rose 0.2% to 2.05% at 11:06 IST on BSE on media reports that the government has asked them to consider buyback of shares.

Coal India (up 0.53% at Rs 301.55), National Aluminium Company (Nalco) (up 1.16% at Rs 34.75), Bharat Heavy Electricals (Bhel) (up 0.2% at Rs 147.60) and NMDC (up 2.05% at Rs 82) edged higher.

Meanwhile, the S&P BSE Sensex was up 155.26 points or 0.64% at 24,590.92.

According to media reports, the government has asked these four public sector undertakings (PSUs) to consider buyback of shares as it is falling short in meeting its divestment target for the current fiscal year. Media reports suggested that Coal India and Nalco are in talks with their respective administrative ministries to buy up to 10% of their shares. The Government of India (GoI) held 79.65% in Coal India, 80.93% stake in Nalco and 80% stake in NMDC as per the shareholding pattern as on 30 September 2015. It held 63.06% in Bhel as on 31 December 2015.

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