NMDC's Rs 1,378-cr share buyback to open on Thursday

State-owned NMDC has announced that its share buyback worth Rs 1,378 crore will open on Thursday, December 17, 2020, and close on December 31, 2020. The buyback has been fixed at Rs 105 per equity share.

NMDC in a regulatory filing on Monday said, "The company is undertaking a buyback of not exceeding 13,12,43,809 fully paid-up equity shares(represents 4.29 per cent of the total number of fully paid-up equity shares in the paid-up share capital of the Company) of face value Re 1 each of NMDC Limited at Rs 105 per equity share for an aggregate consideration not exceeding Rs 1378,05,99,945 (offer size) through a tender offer process."

The Buyback through Tender Offer was considered and approved by the Board of Directors of the Company at their meeting held on Tuesday, November 10, 2020.

The buyback will be for an aggregate consideration not exceeding Rs 13,78,05,99,945 (offer size), representing 5 per cent and 5.05 per cent of the total fully paid-up equity share capital and free reserves, as per the audited standalone and consolidated financial statements of the Company, respectively, for the financial year ended March 31, 2020, it added.

It further added, the buyback offer size is within the statutory limits of 10 per cent of the aggregate of the fully paid-up equity share capital and free reserves as per audited financial statements of the Company under the Board of Directors approval route as per the provisions of the Companies Act, 2013. The maximum number of Equity Shares proposed to be bought back represents 4.29 per cent of the total number of Equity Shares in the issued, subscribed and paid-up equity share capital of the Company.

NMDC, under the steel ministry, is the country's largest iron ore miner. Besides iron ore, it is also involved in the exploration of a wide range of minerals like copper, rock phosphate, limestone, dolomite and gypsum.