Central Coalfields Limited (CCL), a wholly owned subsidiary of Coal India, today approved buyback of equity shares worth not exceeding Rs 1,001 crore.
"The Board of Directors of Central Coalfields Limited at its meeting held on March 3, 2017 has considered and approved the buyback of 5,21,000 fully paid equity shares of face value of Rs 1000 each from the members of CCL on a proportionate basis through tender offer ... For an aggregate amount not exceeding Rs 1,001.88 crore...," the miner said in a regulatory filing to BSE.
The equity shares proposed to be bought back by the miner's subsidiary represent 5.54 per cent of the existing paid up capital of CCL.
"The equity shares are proposed to be bought back by CCL at a price of Rs 19,230 per equity share," Coal India said.
CCL being wholly owned subsidary Coal India the holding would remain unchanged after the buyback.
Northern Coalfields, another CIL subsidiary, will be buying back 4.3 per cent stake worth Rs 1,244 crore, while Mahanadi Coalfields will buyback 2.97 per cent of its shares worth Rs 1,617 crore.
South Eastern Coalfields, the largest subsidiary, will buyback shares worth Rs 1,200 crore.
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