Defence PSU Bharat Electronics (BEL) today said it will buy back equity shares worth Rs 2,171 crore, a part of which will accrue to the government.
The board has approved a proposal to buy back 1.66 crore shares at a price of Rs 1,305 apiece, for over Rs 2,171.15 crore, which is not exceeding 25 per cent of the aggregate of the fully paid-up share capital and free reserves, BEL said in a filing to the BSE.
Government holds 75.02 per cent stake in BEL.
The buy back would happen on a proportionate basis through a tender offer route in accordance with the Companies Act, 2013, it added.
Shares of BEL closed at Rs 1258.55, up 2.27 per cent on the BSE.
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.
Last month the board of Maharatna PSU Coal India had approved a buy back of 25 per cent of their paid up share capital and free reserves aggregating to Rs 3,650 crore.
While in June, NMDC and MOIL board had approved buy back of Rs 7,528 crore and Rs 863 crore, Nalco had in May said it would buy back 25 per cent equity for over Rs 2,835 crore.
The government aims to raise Rs 56,500 crore by selling stakes in state-owned enterprises in 2016-17, out of which Rs 36,000 is to come from minority stake sale in PSUs and rest through strategic sale.