MOIL gains after shareholders approve buyback of over 3.38 cr shares

NEW DELHI – Shares of MOIL rose 2 per cent in early trade Wednesday after the state-owned mining company said that its shareholders had approved the proposal to buyback over 3.38 crore equity shares.

The Buyback Committee of the Board of Directors has fixed Friday, December 31, as the date for determining the entitlement and the names, MOIL said in a BSE filing.

The counter rose to a high of Rs 179.50 against the previous close of Rs 175.90 on the National Stock Exchange.

"...Committee constituted by the Board...conferred by this resolution consent of the members be and is hereby accorded for the buyback by the company of its fully paid-up equity shares of the face value of Rs 10/- each not exceeding 3,38,42,668 equity share... for Rs 205 per equity share payable in cash for an aggregate consideration not exceeding Rs 693,77,46,940 (buyback Offer Size)," MOIL’s statement read, according to PTI.

The shareholders approved the buyback by a special resolution through postal ballot process on Monday.

The board of directors of the company on November 10, 2021, had unanimously approved a proposal for the buy-back of equity shares not exceeding 3,38,42,668 at a face value of Rs 10 each, representing 14.26 per cent of the total number of equity shares in the paid-up share capital of the company, MOIL said.

MOIL, which is under the Ministry of Steel, is India’s largest manganese ore mining company contributing about 40 per cent to the total production in the country.