Public sector NLC India (Neyveli Lignite Corporation) today launched its buyback offer for over 15 crore shares worth Rs 1,491 crore.
In the draft letter of offer, the company said: "Cash offer for buyback of not exceeding 15.06 crore fully paid-up equity shares...Representing 8.98 per cent of the total number of equity shares in the issued, subscribed and paid-up equity share capital of the company...From all the existing shareholders... Through the 'tender offer' process."
The buyback will happen "at a price of Rs 99 per equity share payable in cash for an aggregate consideration not exceeding Rs 1,491 crore," the filing said.
The buyback offer size is not exceeding 10 per cent of the aggregate of the company's fully paid-up equity share capital and free reserves, as per the audited accounts of the company for the financial year ended March 31, 2016.
NLC India Ltd is a navratna company under the Ministry of Coal. Its present total power generation capacity (including JVs) is 4,293.5 MW. The company's projected capital expenditure (up to 2025) is Rs 1.24 lakh crore with a debt-equity ratio of 70:30.
The main activity of NLC India is mining coal and lignite, and power generation -- both thermal and renewable.
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