New Delhi: NMDC and MOIL will buy back 25 per cent of paid-up shares for about Rs 10,000 crore, two-third of which may accrue to the government.
"NMDC and MOIL will buy back 25 per cent of the paid up capital. A notification in this regard is expected shortly," a Finance Ministry official said.
Government holds an 80 per cent stake each in NMDC and MOIL.
On Tuesday, shares in NMDC ended 1.66 per cent higher at Rs 91.65 apiece on the BSE, while MOIL finished 1.42 per cent up at Rs 243.10. The BSE Sensex settled 0.87 per cent higher.
The official said the government is expecting Rs 6,500 crore from the two buy backs after considering the proportion of shares that may be tendered by public and promoters.
The department of Investment and Public Asset Management (DIPAM), previously known as Department of Disinvestment, has been asking such PSUs to utilize surplus cash in either capex or buyback.
Last month, Nalco had said it would buy back 25 per cent of government equity for over Rs 2,835 crore.
This will include a buyback of 64.43 crore shares at a price of Rs 44 apiece. Government holds an 80.93 per cent stake in Nalco.
As at the end of March 2015, NMDC had a cash balance of Rs 18,443 crore, Nalco Rs 4,628 crore and MOIL Rs 2,830 crore.
Facing a disinvestment target of Rs 56,500 crore for current fiscal year, DIPAM has asked cash rich PSUs to buy back shares.
New Delhi: NMDC and MOIL will buy back 25 per cent of paid-up shares for about Rs 10,000 crore, two-third of which may accrue to the government.
"NMDC and MOIL will buy back 25 per cent of the paid up capital. A notification in this regard is expected shortly," a Finance Ministry official said.
Government holds an 80 per cent stake each in NMDC and MOIL.
On Tuesday, shares in NMDC ended 1.66 per cent higher at Rs 91.65 apiece on the BSE, while MOIL finished 1.42 per cent up at Rs 243.10. The BSE Sensex settled 0.87 per cent higher.
The official said the government is expecting Rs 6,500 crore from the two buy backs after considering the proportion of shares that may be tendered by public and promoters.
The department of Investment and Public Asset Management (DIPAM), previously known as Department of Disinvestment, has been asking such PSUs to utilize surplus cash in either capex or buyback.
Last month, Nalco had said it would buy back 25 per cent of government equity for over Rs 2,835 crore.
This will include a buyback of 64.43 crore shares at a price of Rs 44 apiece. Government holds an 80.93 per cent stake in Nalco.
As at the end of March 2015, NMDC had a cash balance of Rs 18,443 crore, Nalco Rs 4,628 crore and MOIL Rs 2,830 crore.
Facing a disinvestment target of Rs 56,500 crore for current fiscal year, DIPAM has asked cash rich PSUs to buy back shares.
New Delhi: NMDC and MOIL will buy back 25 per cent of paid-up shares for about Rs 10,000 crore, two-third of which may accrue to the government.
"NMDC and MOIL will buy back 25 per cent of the paid up capital. A notification in this regard is expected shortly," a Finance Ministry official said.
Government holds an 80 per cent stake each in NMDC and MOIL.
On Tuesday, shares in NMDC ended 1.66 per cent higher at Rs 91.65 apiece on the BSE, while MOIL finished 1.42 per cent up at Rs 243.10. The BSE Sensex settled 0.87 per cent higher.
The official said the government is expecting Rs 6,500 crore from the two buy backs after considering the proportion of shares that may be tendered by public and promoters.
The department of Investment and Public Asset Management (DIPAM), previously known as Department of Disinvestment, has been asking such PSUs to utilize surplus cash in either capex or buyback.
Last month, Nalco had said it would buy back 25 per cent of government equity for over Rs 2,835 crore.
This will include a buyback of 64.43 crore shares at a price of Rs 44 apiece. Government holds an 80.93 per cent stake in Nalco.
As at the end of March 2015, NMDC had a cash balance of Rs 18,443 crore, Nalco Rs 4,628 crore and MOIL Rs 2,830 crore.
Facing a disinvestment target of Rs 56,500 crore for current fiscal year, DIPAM has asked cash rich PSUs to buy back shares.
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