Coal India's subsidiary CCl to buy-back shares worth Rs 1,001 cr

Coal India on Saturday said its wholly owned subsidiary Central Coalfields limited (CCl) has approved buy-back of 5,21,000 fully paid equity shares for an aggregate amount not exceeding Rs 1,001 crore.

"The Board of Directors of Central Coalfields limited at its meeting held on March 3, 2017 has considered and approved the buy-back 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... for an aggregate amount not exceeding Rs 1,001.88 crore...," the miner said in a regulatory filing to BSE.

The equity shares proposed to be bought back by the miner's subsidiary represent 5.54 per cent of the existing paid up capital of CCl.

"The equity shares are proposed to be bought back by CCl at a price of Rs 19,230 per equity share," the miner said.

Since CCl is a wholly owned subsidiary of Coal India limited, both pre and post buy-back by CCl, Coal India shall hold 100 per cent of the paid-up equity share capital, it added.