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NMDC is considering a buyback of fully paid-up equity shares of the company of face value of ₹1 each.
A meeting of the board of directors of the company will be held on June 7 to decide on the proposal.
According to BSE filings, as of March 31, 2016, the promoter (government) held about 80 per cent stake, and the rest remained with the public.
Significantly, the Centre had announced plans to divest a further 10 per cent stake in NMDC earlier this year. Towards this, it had invited expressions from merchant bankers and short-listed five of them. The 10 per cent divestment at the market price prevailing at that point in time would have fetched the Exchequer ₹3,500-4,000 crore.
The government had earlier this year expressed the need for the cash-rich public sector undertakings to emulate their private sector counterparts and buy back shares and strengthen the balance sheet. It is estimated that PSUs have reserves of over ₹2.6 lakh crore.
Cuts iron ore price Earlier, NMDC announced a cut in prices of iron ore — fines and lump ore — by ₹200 a tonne.
With effect from June 2, the lump ore will be sold at ₹1,800 a wet metric tonne (wmt) and fines at ₹1,460/wmt, respectively. On May 4, NMDC had brought down the prices of iron ore by ₹100 a tonne and fines by ₹200 a tonne offering lump ore at ₹2,000/wmt and fines at ₹1,660 wmt.
On Thursday, NMDC shares ended flat at ₹86.45, on the BSE.
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