Mining giant NMDC and manganese miner MOIL today said their share buyback programmes worth close to Rs 8,400 crore will open next week on September 19.
A major portion of the proceeds from the offer will go to the government, which owns 80 per cent in both the PSUs and is eying to meet its disinvestment target of Rs 56,600 crore for the current fiscal ending March 2017.
In separate regulatory filings, both the public sector undertakings (PSUs) informed about the ‘Letter of Offer’. The buyback offers will open on September 19 and will close on September 30, 2016.
IDBI Capital Markets and Securities will be acting as the Manager for the Offer.
India’s largest iron ore miner will buyback shares not exceeding 80.08 crore representing 20.20 per cent of the total number of shares at a price of Rs 94 for an aggregate amount not exceeding Rs 7,527.76 crore.
While, MOIL will buyback up to 3.48 crore shares representing 20.72 per cent stake at a price of Rs 248 for an aggregate consideration not exceeding Rs 863.34 crore.
As at the end of March 2015, NMDC had a cash balance of Rs 18,443 crore, Nalco (Rs 4,628 crore) and MOIL (Rs 2,830 crore).
The Department of Investment and Public Asset Management (DIPAM), previously known as Department of Disinvestment, has been asking cash-rich PSUs to utilise surplus cash in either capex or buy back.