NMDC, MOIL to buy back 25% shares; govt may get Rs 6,500 cr

Cash rich mineral explorer NMDC and MOIL will buy back 25 per cent of the paid up shares for about Rs 10,000 crore, two-third of which may accrue to the government.
"NMDC and MOIL will buy back 25 per cent of the paid up capital. A notification in this regard is expected shortly," a finance ministry official said.
Government holds 80 per cent stake each in NMDC and MOIL.
Shares of NMDC closed at Rs 91.65, up 1.66 per cent on BSE. MOIL scrip ended at Rs 243.10, up 1.42 per cent in BSE.
The official said the government is expecting Rs 6,500 crore from the two buy backs after considering the proportion of shares that may be tendered by public and promoters.

The department of Investment and Public Asset Management (DIPAM), previously known as Department of Disinvestment, has been asking such PSUs to utilise surplus cash in either capex or buy back.

Last month, Nalco had said it would buy back 25 per cent of government equity for over Rs 2,835 crore.
This will include buy back of 64.43 crore shares at a price of Rs 44 a piece. Government holds 80.93 per cent in NALCO.
As at the end of March 2015, NMDC had a cash balance of Rs 18,443 crore, Nalco (Rs 4,628 crore) and MOIL (Rs 2,830 crore).
Facing a disinvestment target of Rs 56,500 crore for current fiscal, DIPAM has asked cash rich PSUs to buy back shares.