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NMDC drops as board approves buyback

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Capital Market
Last Updated : Jan 09 2019 | 10:50 AM IST

NMDC lost 3.21% to Rs 91.90 at 10:23 IST on BSE after the company's board approved the proposal to buyback of equity shares at Rs 98 per share.

The announcement was made after market hours yesterday, 8 January 2019.

Meanwhile, the S&P BSE Sensex was up 205.63 points, or 0.57% to 36,186.56

On the BSE, 2.87 lakh shares were traded in the counter so far compared with average daily volumes of 2.61 lakh shares in the past two weeks. The stock had hit a high of Rs 93.35 and a low of Rs 91.80 so far during the day.

NMDC said the company's board has approved the proposal to buyback of not exceeding 10,20,40,815 equity shares (representing 3.23% of the total number of equity shares in the paid-up share capital of the company) at Rs 98 per equity share for an aggregate consideration not exceeding Rs 1000 crore from all the equity shareholders of the company, as on the record date, on a proportionate basis through a tender offer route.

Net profit of NMDC declined 24.63% to Rs 636.37 crore on 0.69% rise in net sales to Rs 2437.92 crore in Q2 September 2018 over Q2 September 2017.

NMDC is India's single largest iron ore producer, presently producing about 30 million tonnes of iron ore from 3 fully mechanized mines viz., Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State) and Donimalai Iron Ore Mines (Karnataka State).

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First Published: Jan 09 2019 | 10:26 AM IST

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