CIL to buy back Rs 1,065-crore shares

KOLKATA: The proposed buy back of shares by Coal India (CIL) is likely to be worth Rs 1,065 crore and nearly 72 per cent of the amount will go to the government, company sources said on Wednesday. The government currently has around 72-per cent stake in the mining major. Earlier in the day, CIL had announced that its board will meet on Monday to consider and approve buy back of shares of the company. “Board meeting of the company is scheduled on Monday, the February 4, 2019 interalia to consider and approve buyback of the fully paid up equity shares of the company having face value of Rs 10 each,” the company said in an exchange filing. The buyback exercise will take place in two steps, the sources said. “First, Mahanadi Coalfields, South Eastern Coalfields and Northern Coalfields (all CIL subsidiaries) will buy back their shares worth Rs 355 crore each from the parent,” one of the sources said. Thereafter, Coal India will buyback own shares from shareholders out of its free reserves worth Rs 1,065 crore. In the last such CIL buy back, the government had received Rs 2,638 crore in the 2016-2017 fiscal. The state-owned mining behemoth accounts for over 80 per cent of domestic coal output.