NMDC Share Buyback: Rs 1,378-Cr Share Buyback To Open On Dec 17

In a BSE filing, the iron ore miner said the decision was taken at a meeting of its board on Tuesday when it posted an over 10 per cent rise in consolidated net profit to ₹772.53 crore for the September 2020 quarter,

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NMDC  Buyback Share: State-owned NMDC has announced on Monday that its share buyback worth Rs 1,378 crore will open on Thursday, December 17, 2020, and close on December 31, 2020. Earlier, NMDC had said that its board has approved a share buyback proposal of up to ₹1,378 crore. 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. Also Read: Air India Sale: After Failed Bids In The Past, Air India’s Turnaround Plan Will Not Be Easy. Here’s Why Things to know about the buyback offer

• The tender offer is at Rs 105 per share for an aggregate amount not exceeding Rs 1,378 crore. In its regulatory filing on Monday, the company said, "The company is undertaking a buyback of not exceeding 13,12,43,809 fully paid-up equity shares(represents 4.29 per cent of the total number of fully paid-up equity shares in the paid-up share capital of the Company) of face value Re 1 each of NMDC Limited at Rs 105 per equity share for an aggregate consideration not exceeding Rs 1378,05,99,945 (offer size) through a tender offer process."
• The Buyback through Tender Offer was approved by the Board of Directors at the company meeting held in November.
• IDBI Capital Markets & Securities Ltd is handling the share buyback offer as the Manager for the state-owned iron ore mining major.
• The buyback will be for an aggregate consideration not exceeding Rs 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, as per the audited standalone and consolidated financial statements of the Company, respectively, for the financial year ended March 31, 2020, it added.
• The company on Tuesday posted an over 10 per cent 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.