Companies

NMDC submits draft letter of offer for buyback of shares, sets November 23 as record date

Our Bureau Hyderabad | Updated on November 20, 2020 Published on November 20, 2020

This offer represents 4.29 per cent of the total equity shares issued

The State owned iron ore mining major NMDC Limited has filed the draft letter of offer for buyback of shares not exceeding 13.12 crore shares of fully paid up capital of face value of ₹1 each.

This offer represents 4.29 per cent of the total equity shares issued, subscribed and paid up equity share capital of the company, form all its existing shareholders as on November 23, 2020, the record date.

Also read: NMDC Board nod for buyback of shares

The issue of shares will be on a proportionate basis through a tender offer price of ₹105 per equity share for an aggregate consideration of ₹1,378.05 crore.

In a regulatory filing with BSE, NMDC has mentioned that the Buyback is in accordance with the provisions of the Companies (Share Capital and Debentures) Rules, 2014 and subject to all mandatory approvals, including from SEBI, the Stock Exchanges and Reserve Bank of India.

Also read: Why you should hold on to NMDC stock

The Buyback offer size, which is not exceeding ₹1378,05 crore represents 5 per cent and 5.05 per cent of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of the Company, respectively for the financial year ended March 31, 2020.

This Letter of Offer is being sent to eligible shareholders of NMDC.

IDBI Capital Markets & Securities Limited is the Manager to the Buyback Offer, Aarthi Consultants is the Registrar

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Shares of NMDC were trading at ₹93.65, down 2.55 per cent in the morning trade at BSE.

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Published on November 20, 2020
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