Coal India arm CCL approves Rs 1002-crore buyback plan

World's largest coal producer Coal India today said its arm Central Coalfields has approved a share buyback plan worth Rs 1,001.88 crore.

"The board of directors of Central Coalfields Ltd (CCL), our wholly-owned subsidiary, at a meeting held on March 3, 2017 considered and approved the buyback 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," Coal India said in a BSE filing today.

The equity shares are proposed to be bought back "for an aggregate amount not exceeding Rs 1,001.88 crore...at a price of Rs 19,230 per equity share payable in cash, subject to the approval of the shareholders of CCL," it said.

The equity shares proposed to be bought back by CCL represent 5.54 per cent the total number of equity share capital in the paid up share capital of CCL, the company said. Coal India accounts for over 80 per cent of the country's domestic production.