Oil India to buy back shares with Rs 1,085 cr
Stateowned Oil India Ltd will buy back 504 crore of its shares for a little over Rs 1,085 crore as part of the governments push to cashrich PSUs to part with their surplus either by paying higher dividends or through share buybacks so as to help meet revenue targets
New Delhi: State-owned Oil India Ltd will buy back 5.04 crore of its shares for a little over Rs 1,085 crore as part of the government's push to cash-rich PSUs to part with their surplus either by paying higher dividends or through share buybacks so as to help meet revenue targets.
In a regulatory filing, OIL said its board has approved buyback of shares at an aggregate of no more than 10 per cent of the fully paid-up equity share capital and free reserves of the company. The board approved “the buyback by the company of its fully paid-up equity shares of Rs 10 each not exceeding 5.05 crore equity shares (representing about 4.45 per cent of the total number of equity shares in the paid-up share capital of the company) at a price of Rs 215 per equity share payable in cash for an aggregate consideration not exceeding Rs 1085.72 crore,” it said.
The nation's second large oil explorer had a little less than Rs 20,000 crore of reserves. OIL shares closed at Rs 218.78 on the BSE on Thursday. Friday was a trading holiday on account of Gurunanak Jayanti. The government is targeting a minimum Rs 5,000 crore through share buyback offers of state-owned firms like Coal India and BHEL.
Besides OIL, at least half a dozen other central PSUs have disclosed share buyback programmes. Prominent among these include NHPC, BHEL, NALCO, NLC, Cochin Shipyard and KIOCL that could fetch the government a little over Rs 3,000 crore. The government is expected to participate in each of the share buyback programme of these PSUs.