NTPC board to consider share buyback on 2 Nov2 min read . Updated: 26 Oct 2020, 04:45 PM IST
On Monday, NTPC's scrip on BSE closed 0.5% lower at ₹85.80
New Delhi: State-run power giant NTPC on Monday told stock exchanges its board of directors will consider a proposal for buyback of equity shares of the company on 2 November.
On Monday, NTPC's scrip on BSE closed 0.5% lower at ₹85.80.
"It is hereby intimated that a meeting of the Board of Directors of the Company is scheduled to be held at New Delhi on Monday, 2nd November, 2020, to inter-alia,
a. consider, approve and take on record the Un-audited Financial Results of the Company for the quarter and half year ended September 30, 2020 after these results are reviewed by the Audit Committee of the Board.
b. consider proposal for buyback of equity shares of the Company," the company said in a stock exchange filing.
Capital markets regulator Sebi had on Friday granted exemption to state-run NTPC from certain buyback norms for the proposed merger of wholly-owned subsidiaries with the parent company.
In October, NTPC had filed an application with the Securities and Exchange Board of India (Sebi) to seek exemption from the strict enforcement of the buyback norms.
The application had been necessitated on account of a scheme of amalgamation providing for the merger of NTPC's wholly-owned subsidiaries with itself, a Sebi order said.
In November 2019, NTPC's board of directors had approved a scheme of amalgamation entailing the merger of Nabinagar Power Generating Company Ltd and Kanti Bijlee Utpadan Nigam Ltd with NTPC.
Last week, Bloomberg reported that Indian government is planning to ask some state-owned companies to repurchase shares to help the government shore up its finances amid the coronavirus pandemic, according to a person with knowledge of the matter.
"Coal India Ltd., NTPC Ltd., NMDC Ltd., MOIL Ltd., KIOCL Ltd, and Engineers India Ltd. are among the eight companies that might be asked to buy back shares this year, the person said, asking not to be identified as the information is not public. The government, being the largest shareholder in these companies, will benefit from the transactions by tendering the equity it holds in return for cash," the news agency reported.
The strategy will help Prime Minister Narendra Modi’s administration access part of the more than ₹40,000 crore of cash hoard with the companies as of March 31, at a time it has struggled to meet its target of raising money from tax and sale of state assets. The government has raised less than 3% of its ₹2.1 trillion target selling state assets since April 1, while tax revenues have also slowed as the virus ravages the economy.