Govt sets sights on Rs 5,000 crore via share buybacks

The government is looking to mobilise Rs 5,000 crore through share buybacks by January-end, according to an ETNow report that quoted agencies.

The Centre expects Coal India share buyback to take off by January-end, the report said.

Stock of Coal India was 0.70 per cent up at Rs 264.90 in the afternoon trade while the BSE Sensex surged 0.62 per cent to 35,481.


According to an earlier report, the finance ministry has shortlisted nearly a dozen central public sector enterprises (CPSEs), including Coal India, NTPC, Nalco and NMDC, for a possible buyback of shares in the ongoing financial year. The list also includes BHEL, NHPC, NBCC, SJVN, KIOCL and Hindustan Aeronautics.

These CPSEs have been asked to buy back their shares following the capital restructuring guidelines set out by the Department of Investment and Public Asset Management (DIPAM) on May 27, 2016.

The guidelines mandate that CPSEs having a net worth of at least Rs 2,000 crore and cash and bank balance of above Rs 1,000 crore have to mandatorily go in for a share buyback.