NEW DELHI: The world’s largest coal producer Coal India on Saturday said that one of its subsidiaries, Central Coalfields has approved a share buyback plan worth Rs 1,001.88 crore.
“The board of directors of Central Coalfields Ltd (CCL), our wholly-owned subsidiary, at a meeting held on March 3, 2017 considered and approved the buyback of 5,21,000 fully paid equity shares of face value of Rs 1,000 each from the members of CCL on a proportionate basis through tender offer,” Coal India said in a BSE filing.
According to the firm, the shares are proposed to be bought back “for an aggregate amount not exceeding Rs 1,001.88 crore... at a price of Rs 19,230 per equity share payable in cash, subject to the approval of the shareholders of CCL.”
The equity shares proposed to be bought back by CCL represent 5.54 percent the total number of equity share capital in the paid up share capital of CCL, the company said.
Coal India alone accounts for over 80 percent of the country’s domestic production. Since CCL is a wholly owned subsidiary of Coal India Limited, both before and post buy-back by CCL, Coal India shall hold 100 per cent of the paid-up equity share capital, it added.
Earlier in the week, the board of Mahanadi Coalfields Ltd had agreed to release Rs 1,617.06 crore in cash through a share buyback, almost Rs 600 crore more than it had agreed to release in June last year. With its fourth wholly owned subsidiary agreeing to buy back shares, Coal India is set to receive more than Rs 5,000 crore in cash.
