Coal India to buy back 0.72pc shares not exceeding Rs 1,050cr

Coal India Ltd (CIL) on Monday announced a buyback of 4.46 crore shares of Rs 10 each for an aggregate consideration of close to Rs 1,050 crore.

The volume represents 0.72 per cent of its total outstanding shares at a price of Rs 235 a piece.

The buy back price is about 6 per cent higher than Coal India shares' closing price of Rs 222 on BSE.

The aggregate consideration should not exceed Rs 1,050 crore, the company informed the bourses in a release. The record date for the buy back has been fixed for February 15.

The government is likely to garner Rs 766 crore from the buy back with a stake of a little less than 73 per cent in the mining major.

CIL had on January 30 announced to consider and approve buy back of shares.

The buy back exercise will be conducted in two steps.

Coal India subsidiaries Mahanadi Coalfields Ltd, South Eastern Coalfields Ltd and Northern Coalfields Ltd will buy back their shares worth Rs 355 crore each from the parent.

Thereafter, CIL will buy back its own shares from shareholders out of the free reserves worth Rs 1,065 crore.

In the last such CIL buy back, the government had received Rs 2,638 crore in the 2016-2017 fiscal.