Coal India to raise Rs 1050 crore via its second-ever share buyback

The buyback price is higher than the scrip's price on the BSE which has been hovering around Rs. 222-235 per share since the last 30 days

Coal India, on Monday, decided to buyback 44.68 million shares of the company from the market at a price of Rs. 235 apiece which will fetch the Maharatna company a targeted Rs. 1050 crore. Its cash rich subsidiaries – Mahanadi Coalfields (MCL), South Eastern Coalfields (SECL) and Northern Coalfields (NCL) – will be funding the buyback.

This offer size represents 0.72 per cent of the total number of the company’s shares which is also 9.86 per cent of the share capital and free reserves of Coal India on a standalone basis. Out of the targeted amount, the central government, which