The board of directors of iron ore mining major NMDC has approved a ₹1,000 crore share buyback plan. The buyback plan, the second one in the past three years, has been approved by the Finance Ministry.
According to the proposals, the shares will be be offered at ₹98 apiece and the record date for the process to be valid has been fixed at January 18. If the share buyback goes according to plans, the entire process is likely to be completed before March.
According to the latest filings with the BSE, the promoter and promoter group — Union Government — holds 72.43 per cent of the total equity of over 316.38 crore shares, and the rest 27.57 per cent of the shares are held by the public. The share buyback plan is part of the Centre’s move to buyback shares of several public sector undertakings. These include, ONGC, Oil India, BHEL, Nalco among others. The government expects to garner about ₹9,000 crore through the buyback offers.
Eligible shareholders for the buyback plan will be sent letter of offer to participate in the buyback of over 10.2 crore fully paid-up equity shares of the company.
The company had in the year 2016 also came up with a major buyback, wherein it bought back more than 80 crore shares of ₹1 each totalling about ₹7,500 crore.
On Tuesday, NMDC shares closed at ₹94.95, down 0.11 per cent, on the BSE.