Representational image
Representational image

State-owned NMDC on Monday announced that it will be offering Rs 1,378-crore share buyback to investors for a period starting December 17 and closing on December 31, 2021, the company said in its statement to the BSE.

Shares of NMDC Ltd on Tuesday were down 2.57 percent at 113.70 at the Bombay Stock Exchange at around 10.30 am.

NMDC had earlier approved 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.

On last Friday, NMDC had said that 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 per cent and 5.05 per cent of the total fully paid-up equity share capital and free reserves, respectively, it added.

Shares of NMDC Ltd. jumped to their highest since January as investors weighed an opportunity amid supply concerns in China after its leading mills’ group pushed authorities to investigate a surge in iron ore prices in the nation.

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