New Delhi: State-owned Coal India on Monday said it has fixed 9 September as the record date for buyback of its shares. The country’s leading miner had last week announced that its shareholders have approved buyback of 10.89 crore shares at a price of ₹ 335 apiece, aggregating to ₹ 3,650 crore.
“The buyback Committee of the Board of Directors...has approved 9 September 2016 as record date for buy-back of shares of Coal India Limited (CIL) to determine the entitlement of equity shareholders in the buy-back, the shareholders who would be eligible to participate in the buy-back and the shareholders to whom the letter of offer...will be delivered in relation to the buy-back," Coal India said in a filing to the BSE.
Shares of Coal India on Monday closed marginally up at ₹ 333.85 apiece on BSE. The finance ministry is pushing for buyback of shares by CPSEs. This is being done for two purposes — to generate cash for the government and help push up the valuation for any divestment.
The government has set a disinvestment target of ₹ 56,500 crore for 2016-17. Of this, ₹ 36,000 crore is expected to come from minority stake sales.
The Centre also needs to bring down its stake in CIL below 75% to adhere to Sebi norms. The deadline for ensuring this is August 2017.