The board of NLC India on Tuesday approved a proposal to buy back 14.19 crore shares at ₹88 a share. This buyback represents 9.28 per cent of the total number of equity shares in the paid-up share capital of the company, bringing the size of the buyback offer to ₹1,248 crore. The buyback price for the stock stands at 19 per cent premium to Tuesday’s closing price of ₹73.95 on the BSE.
The buyback offer size is 10 per cent of the aggregate of the fully paid-up capital and free reserves, based on FY18 financial results, the company said in a statement.
The board of directors noted the intention of the promoter of the company (the Centre) to participate in the proposed buyback, it added.
According to the release, shareholding pattern as on October 5 indicates promoter group holds 83.94 per cent stake in the PSU major, while FIIs and DIIs control 0.25 per cent and 12.99 per cent respectively and individuals own 2.15 per cent.
Last year (in March), the company had bought back 14.91 crore shares worth ₹1,476.50 crore at ₹99 a share through tender route.