Central Coalfields won’t proceed with Rs1,002-crore share buyback plan

Central Coalfields said the board decided not to proceed with the proposed share buyback based on the revised valuation report submitted by the merchant banker


Coal India accounts for over 80% of the country’s domestic production. Photo: AFP
Coal India accounts for over 80% of the country’s domestic production. Photo: AFP

New Delhi: State-owned Coal India Ltd arm Central Coalfields Ltd (CCL) on Saturday said that it will not go ahead with the proposed share buyback plan worth Rs1,001.8 crore.

“The board of Directors of CCL at its meeting held on March 10, 2017 have after reviewing the limited reviewed unaudited financials of the Company ended 31 December 2016, based on the Revised Valuation Report submitted by Merchant Banker, decided not to proceed with the proposed buyback,” Coal India said in a filing to the Bombay Stock Exchange.

Central Coalfields—the Coal India arm—had a few days back approved a share buyback plan worth Rs1,001.88 crore. “The board of directors of 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.

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,” it had said.

The equity shares proposed to be bought back by CCL represent 5.54% the total number of equity share capital in the paid up share capital of CCL, the company had said. Coal India accounts for over 80% of the country’s domestic production.

In another filing to BSE, CIL said its board on Saturday approved to tender the shares held by the PSU in its arms—Mahanadi Coalfields Ltd (MCL), Northern Coalfields Ltd (NCL), South Eastern Coalfields Ltd (SECL)—in their respective buyback offer.

MCL’s 4,51,743 shares would be tendered in the buyback offer and “the price per share at which the shares are to be tendered is (in Rs) 35,796.02.” NCL’s 4,11,135 shares would be tendered in the buy back offer and “the price per share at which the shares are to be tendered is (in Rs) 30,260.70.” SECL’s 6,09,250 shares would be tendered in the buy back offer and “the price per share at which the shares are to be tendered is (in Rs) 19,699.47.”

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