Kolkata, July 12 (IANS) Coal India Board has approved a buyback of over 10 crore shares at a price of Rs 335 per share for an aggregate consideration not exceeding Rs 3,650 crore, the company said on Tuesday.
The buyback offer is, however, subject to approval from shareholders and other regulators and government authorities.
“The Board of Directors of Coal India Limited (CIL) at its meeting held on Monday has subjected to the approval of the shareholders of the company by way of special resolution through postal ballot and subject to approvals of statutory, regulatory or governmental authorities as may be required under applicable laws, approved the buyback of not exceeding 10,89,55,223 equity shares of the company,” the board said in a filing to Bombay Stock Exchange on Tuesday.
According to the company, the offer will not exceed 25 per cent of the aggregate fully paid-up share capital and free reserves of the company as per audited accounts for the financial year ended March 31, 2016.
Government holding in the company was at 79.65 per cent as on March 31, 2016.