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Public Sector upstream oil and gas explorer, Oil India has approved the buyback of 5.60 per cent of the company’s paid up share capital for a consideration of ₹ 1527.01 crore. In a filing to the exchanges, the company said that its board has approved the buy back at ₹ 340 a share. The board aims to buy back up to 4.49 crore shares of the company. Shares of Oil India closed 0.54 per cent lower in trade at ₹ 334 a share at BSE on Monday.
As the promoter, the government currently holds 53.61 crore shares totalling 66.89 per cent of Oil India.
The Centre hopes to raise ₹ 45,000 crore from disinvestment of public sector units this fiscal. Till now, it has raised close to ₹ 40,000 crore through measures including buybacks, stake sales as well as exchange traded funds. Most recently, the third tranche of the government’s PSU-ETF received bids for over ₹ 9,200 crore as against the target of ₹ 2,500 crore
Upstream companies in globally have been looking upwards as crude has settled in the $ 55 - $ 60 per barrel range. Oil India Chairman, Utpal Bora had also told BusinessLine in an earlier interview that Brent crossing $ 50/bbl was good news for the upstream companies like Oil India and ONGC as their margins will be better. He said, “The cost of production is also lower due to our aged oil fields; we are comfortable in the $50-$55 range.”
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