1. NMDC buys back shares worth R7,527 crore

NMDC buys back shares worth R7,527 crore

State-owned miner NMDC said it has bought back 80.08 crore shares for Rs 7,527 crore as a part of a share buyback offer which began on September 19, 2016.

By: | Mumbai | Published: October 15, 2016 6:12 AM

State-owned miner NMDC said it has bought back 80.08 crore shares for Rs 7,527 crore as a part of a share buyback offer which began on September 19, 2016.

In June this year, the board had approved a proposal to buy back shares, subject to the approval of shareholders, for an aggregate amount not exceeding Rs 7,527 crore at a price not more than Rs 94 per share through a tender offer.

The company said, post buyback, the promoters’ holding in the company declined to 74.94% from 80%, while public holding has increased to 3.07% from 2.45%.

On Friday, the stock was down 0.04% at Rs 117.20 on the BSE, compared to a 0.11% rise in the benchmark index. A combined 22.92 lakh shares changed hands on the BSE and NSE so far.

The company has cash and equivalents of Rs 14,811 crore as on March 31, 2016.

In May, the Department of Investment and Public Assets Management (DIPAM) directed public sector undertakings (PSUs) having net worth of at least Rs 2,000 crore and cash and bank balance of over Rs 1,000 crore to buy back their shares.

In May, the Department of Investment and Public Assets Management (DIPAM) directed public sector undertakings (PSUs) having net worth of at least Rs 2,000 crore and cash and bank balance of over Rs 1,000 crore to buy back their shares.

The government had set a divestment target of Rs 56,500 crore for FY17. The BSE PSU has risen by 39% from the day of the Budget. The benchmark Sensex has gained 20.3% during this period.

According to the Securities & Exchange Board of India rules, a company can buy back shares either from its existing shareholders on a proportionate basis through a tender

offer, the open market or odd

lot holders.

In the case of a tender offer, the company has to deposit 25% of the consideration in the escrow account if the consideration does not exceed Rs 100 crore. Companies offer resort to buybacks to enhance their value since shares bought back are extinguished and earnings per share get a boost.

Promoter holding in MOIL falls to 75.8% post share buyback

State-owned MOIL has bought back 3.48 crore shares for Rs 863 crore as part of a share buyback offer which began on September 19, 2016, the company said in a regulatory filing.

In June this year, the company’s board had approved a proposal to buyback shares, subject to the approval of shareholders, for an aggregate of an amount not exceeding Rs 863.34 crore at a price not more than Rs 248 per share through a tender offer.

The company said, post buyback, the promoters’ holding in the company declined to 75.8% from 80%, while public holding has increased to 11.88% from 9.44%.

On Friday, the stock was up 0.78% at Rs 262.45 on the BSE, compared to the 0.11% rise in the benchmark index.

A combined 85,690 shares changed hands on the counter on the BSE and the National Stock Exchange so far. The company has cash and equivalents of Rs 2,850 crore as on March 31, 2016 .

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