Five subsidiaries to add Rs 5,000 crore to Coal India’s kitty through buyback

KOLKATA: Coal India is likely to receive a total Rs 5,000 crore from share buyback by five of its wholly owned subsidiaries. Between Saturday and Tuesday, four Coal India subsidiaries decided on the quantum of buy back at separate board meetings. Till now it has totalled Rs 4,000 crore.

A fifth subsidiary, Central Coalfields, is likely to announce buy back of Rs 1,000 crore soon. Coal India will use the total Rs 5,000 crore to buy back its shares from the government and the public.

On Tuesday South Eastern Coalfields, decided on a Rs 1,200 crore buy back. The board approved buyback of 8.46 lakh fully paid equity shares of face value of Rs 1000 each at a price of Rs 14,180.57 per equity share. It represents 23.53% of the total number of equity shares in the paid-up share capital of the company.

Western Coalfields decided to buy back 25% of its shares from the parent at a total of Rs 789.3 crore. At a meeting held on Monday, the board of directors of Western Coalfield approved buyback of 7.43 lakh fully paid equity shares of face value Rs 1000 each at a price of Rs 10,626.73 per shares.

Last Saturday, Mahanadi Coalfields decided to buy back 23.82% of its equity shares of face value Rs 1,000, at a price of Rs 23,171.89 per share totalling Rs 1029 crore.

At its board meeting held the same day, Northern Coalfields decided on buying back 22.62% of its shares of face value Rs 1,000 each at a price of Rs 23,610 to talling Rs 949 crore from its parent, Coal India.