MOIL fell 1.01% to Rs 240.65 at 11:21 IST on BSE as the buyback price of Rs 248 per share was close to the ruling market price.
Meanwhile, the S&P BSE Sensex was up 19.50 points or 0.08% at 27,030.42
On BSE, so far 25,500 shares were traded in the counter as against average daily volume of 24,238 shares in the past one quarter. The stock hit a high of Rs 245.50 and a low of Rs 240.10 so far during the day. The stock had hit a record low of Rs 180.10 on 12 February 2016. The stock had hit a 52-week high of Rs 257 on 25 June 2015. The stock had underperformed the market over the past one month till 7 June 2016, rising 0.89% compared with 7.06% gains in the Sensex. The scrip, however, outperformed the market in past one quarter, gaining 22.84% as against Sensex's 9.59% gains.
The mid-cap company has equity capital of Rs 168 crore. Face value per share is Rs 10.
The stock had risen in the run up to the announcement of the details of the share buyback. The scrip had gained 9.97% in four trading sessions to settle at Rs 243.10 yesterday, 7 June 2016, from its close of Rs 221.05 on 1 June 2016.
The buyback price of Rs 248 per share represents a premium of 2.01% to the the stock's closing price of Rs 243.10 yesterday, 7 June 2016. The company announced the buyback price before market hours today, 8 June 2016. MOIL has announced buyback of 3.48 crore equity shares, representing 20.72% of the total number of equity shares in the paid-up share capital of the company at Rs 248 per share for an aggregate consideration not exceeding Rs 863.34 crore. The buyback will be through the tender offer route.
The promoter of the company intends to participate in the proposed buyback. The central government and the Maharashtra and Madhya Pradesh state governments are the promoters of MOIL. The central government currently holds 71.57% stake, the Maharashtra state government holds 4.62% and the Madhya Pradesh state government owns 3.81% stake in MOIL (as per the shareholding pattern as on 31 March 2016).
MOIL's net profit declined 79.1% to Rs 21.38 crore on 29.9% growth in net sales to Rs 209.62 crore in Q4 March 2016 over Q4 March 2015.
MOIL produces and sells different grades of manganese ore. It currently operates 10 mines, six located in the Nagpur and Bhandara districts of Maharashtra and four in the Balaghat district of Madhya Pradesh.
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