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Coal India Rallies to Central Coalfields' Nod to Buyback Plan



March 6, 2017 - Coal India rallied nearly 2 percent on Monday to become the top Sensex gainer in morning trade after world's largest coal producer said its arm Central Coalfields has approved a share buyback plan worth Rs 1,001.88 crore. 

At 09:40 am, Coal India was trading 1.3 percent higher at Rs 326.10. It touched a high of Rs 327.95 and a low of Rs 322.85 in the first 30-minutes of trade. 

"The board of directors of Central Coalfields Ltd (CCL), our wholly-owned subsidiary, at a meeting held on March 3, 2017 considered and approved the buyback of 5,21,000 fully paid equity shares of face value of Rs 1,000 each from the members of CCL on a proportionate basis through tender offer," Coal India said in a BSE filing today. 

The equity shares are proposed to be bought back "for an aggregate amount not exceeding Rs 1,001.88 a price of Rs 19,230 per equity share payable in cash, subject to the approval of the shareholders of CCL," it said.