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Shares of Coal India rose as much as 2.07 per cent and was the top percentage gainer on the NSE index.
The stock climbed as the company's arm Central Coalfields Ltd 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 had said in a Bombay Stock Exchange filing on Saturday.
The equity 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 filing said.
The equity shares proposed to be bought back by CCL represent 5.54 per cent the total number of equity share capital in the paid-up share capital of the company, it said.
CIL stock was on track to record biggest single-day percentage gain since February 22.
The stock was up about 7 per cent this year as of Friday's close.
Coal India accounts for over 80% of the country’s domestic production.
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