Coal India to raise about Rs 1,065 cr by selling shares to arms

State-owned CIL will raise about Rs 1,065 crore by selling shares to its subsidiaries MCL, SECL and NCL, according to a filing.

The three arms have in their separate board meetings have decided to buy back portion of their shares held by Coal India Ltd (CIL), the company said in the filing to the BSE.

"MCL proposes to buy back 4,42,967 fully paid equity shares...aggregating to Rs 355 crore from the members of MCL on a proportionate basis through a tender offer," CIL added in the filing.

The decision on the same was taken in the meeting of board of directors of Mahanadi Coalfields Ltd (MCL) held Monday, CIL added.

The equity shares proposed to be bought back by MCL, at a price of Rs 8,014.13 apiece, represent 6.27 per cent of its existing paid-up capital.

"The present issued, subscribed and paid-up equity share capital of MCL is 70,61,330 equity shares of face value of Rs 1,000 each. Post the buyback, the equity shares of MCL will be 66,18,363," the filing said.

As MCL is a wholly-owned subsidiary of CIL, both before and after the buyback by MCL, Coal lndia shall hold 100 per cent of the paid-up equity share capital.

"SECL (South Eastern Coalfields Ltd) proposes to buy back 4,90,039 fully paid equity shares of face value of Rs 1,000 each at a price of Rs 7,244.32 per equity share aggregating to Rs 355 crore from the members of SECL on a proportionate basis through a tender offer," the filing said.

The equity shares proposed to be bought back by SECL represent 7.453 per cent of the existing paid-up capital of SECL.

"NCL (Northern Coalfields Ltd) proposes to buy back 5,18,560 fully paid equity shares of face value of Rs 1,000 each at a price of Rs 6,845.83 per equity share aggregating to Rs 355 crore from the members of NCL on a proportionate basis through a tender offer," it added.

The equity shares proposed to be bought back by NCL represent 7.59 per cent of the existing paid-up capital of NCL.

Coal India accounts for over 80 per cent of domestic coal output.