Coal India subsidiary CCL shelves Rs 1,002 cr buyback proposal

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Kolkata, March 11 (IANS) Coal India on Saturday said its wholly-owned subsidiary Central Coalfields Limited (CCL), which had approved a Rs 1,001.88 crore buyback proposal, has decided “not to proceed” with the plan.

“..the Board of Directors of CCL at its meeting held on March 10, 2017 has, after reviewing the limited reviewed unaudited financials of the company ended December 31, 2016 based on the Revised valuation Report submitted by the merchant banker, decided not to proceed with the proposed buyback,” the miner said in a regulatory filing.

Last week, the miner’s arm had approved buyback of 5,21,000 fully paid equity shares for an aggregate amount not exceeding Rs 1,001.88 crore.

It had also said the equity shares proposed to be bought back by the miner’s subsidiary would represent 5.54 per cent of the existing paid up capital of CCL.

In another regulatory filing, CIL which produces 84 per cent of the country’s coal, said its board on Saturday approved to tender the shares held by the company in its subsidiaries — Mahanadi Coalfields Ltd (MCL), Northern Coalfields Ltd (NCL), South Eastern Coalfields Ltd (SECL) — in their respective buyback offer.

MCL’s 4,51,743 shares would be tendered in the buyback offer and “the price per share at which the shares are to be tendered is Rs 35,796.02”.

Accordingly, NCL’s 4,11,135 shares would be tendered at Rs 30,260.70 per share while SECL’s 6,09,250 shares would be tendered Rs. 19,699.47 a share.

–IANS

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