Coal India shares fell over 2 per cent intraday on Tuesday after its board decided to buy back its shares at a cost of Rs 3,650 crore.
At 11.03 am, Coal India shares were trading 1.34 per cent down at Rs 316.20. The scrip opened at Rs 322 and has touched a high and low of Rs 322 and Rs 313.50, respectively, in trade so far.
Coal India stood among the top losers on the NSE. The share price of the company closed 1.14 per cent down at Rs 316.85.
About 10.89 crore shares would be bought back at Rs 335 per share, CIL sources said.
According to traders, the quantum of buyback is quite small and will not create excitement in market, as against expectations of Rs 6,000 crore.
Analysts at Citigroup told Reuters that a lower-than-expected buyback amount could potentially alleviate some investor concerns around dividend.
With Reuters inputs
