Coal India Limited (CIL) will begin its share buyback programme from October 3 this year. The public sector undertaking will be buying up to 10,89,55,233 equity shares from the shareholders of the company, including promoters, at a price of Rs. 335 per share through the tender offer process.
The buyback programme closes on October 18, 2016.
CIL shares closed at Rs. 332 apiece on Tuesday on the Bombay Stock Exchange (BSE).
"The Buyback Offer size represents approximately 24.95 percent of the aggregate of the fully paid-up share capital and free reserves, as per the audited accounts of the company for the financial year ended March 31, 2016," the company said in a regulatory filing on Tuesday.
"It is within the statutory limits of 25 percent of the aggregate of the fully paid up share capital and free reserves as per the audited accounts of the company for the financial year ended March 31, 2016," it added.
CIL will be sending letters of offer to shareholders of the company as on the record date for the purpose, fixed as Sept. 9, 2016.
The company has appointed SBI Capital Markets Ltd. to manage the buyback programme.
For the first quarter ended June 30, 2016, CIL posted net profit of Rs. 3,065 crore on sales of Rs. 17,796 crore. While net profit dropped 15 percent, revenues fell 6 percent on an year-on-year (YoY) basis.
During the quarter. coal production of the company grew 3.5 percent YoY to 125.67 million tonnes. The company's off take also increased 2.98 percent to 133.24 million tonnes.