State-owned NMDC on Wednesday said its board has approved a share buyback proposal of up to ₹1,378 crore.
In a BSE filing, the company said the decision was taken at a meeting of its board on Tuesday.
“The board approved a proposal for buyback of 13,12,43,809 fully paid-up equity shares of a face value of Re 1 each from the company’s shareholders at a price of ₹105 per equity share payable in cash,” NMDC said.
The buyback will be for an aggregate consideration not exceeding ₹13,78,05,99,945 (offer size), representing 5% and 5.05% of the total fully paid-up equity share capital and free reserves, respectively, it added.
The company on Tuesday posted an over 10% rise in consolidated net profit to ₹772.53 crore for the September 2020 quarter, compared with ₹701.54 crore net profit in the year-ago quarter.
NMDC, under the steel ministry, is the country’s largest iron ore miner. Besides iron ore, it is also involved in the exploration of a wide range of minerals like copper, rock phosphate, lime stone, dolomite and gypsum.
