State-run hydro power generator NHPC Ltd’s board of directors may consider a proposal for buyback of shares at a meeting on Tuesday.
At “board meeting scheduled on February 7, 2017...the board of directors may also consider the proposal for buyback of the fully paid-up equity shares of the company,” NHPC Ltd said in a BSE filing.
However, the company has not made it clear that whether it would buy back shares from its promoter, the central government holding 74.51 per cent of the equity or other shareholders.
The company, however, did not disclose the quantum of amount it is looking to raise through this offer and number of shares to be bought back under the said proposal to be vetted by board on the February 7 meeting.
“When we say shareholders, we mean all of them. They could be general shareholders and central government also. More details about the buyback proposal would be available on February 7, 2017," National Hydroelectric Power Corporation Director (Finance) Jayant Kumar told PTI.
Under the buyback plan, the shares bought by the company are extinguished from the shareholding. Thus the shareholding is reducing by that much number of shares and capital.
Kumar remained tight lipped when asked whether it is linked with central government’s divestment plans in the public sector undertakings.
Yesterday, Finance Minister Arun Jaitley said the government has budgeted to raise Rs 72,500 crore through disinvestment in CPSEs in 2017—18, which is higher than the Rs 45,500 crore raised in the current fiscal as per revised estimate.
Fiscal 2016—17 is the seventh year in a row when the government would not be meeting the disinvestment target fixed in the Budget. As much as Rs 56,500 crore was budgeted to be raised through PSU disinvestment in 2016-17.