Coal India to spend Rs 3650 crore on share buyback; stock falls
The Board of Directors of Coal India Ltd on Monday approved the buying back of 1.72% of its shares at a cost of Rs 3650 crore.
Following the decision, on Tuesday, at 1313 hours the shares of the company were trading down 1.15% at Rs 316.80. It touched the low at Rs 313.50 on BSE.
The state-run company announced that around 10.89 crore shares will be buyback at Rs 335 per share.
As per a PTI report, the Finance Ministry is pushing for buyback of shares by PSUs in order to generate cash for the government and to help push the valuation for any divestment.
As per the SEBI norms, the centre is required to decrease its stake in CIL by August 2017.