Market regulator SEBI has given the exemptions to Coal India for the proposed share buyback issue of the company.
Coal India had filed an application with SEBI on February 12, seeking exemption from strict enforcement of buyback rules. According to the order of SEBI, this application was necessary for the transfer of Coal India’s 4,46,80,850 equity shares (which were owned by its promoter, ie, the management company of India-22 ETF) in February. Remember that on February 14, one-day second FFO of India-22 ETF was open.
According to the buyback rules, the approval of the buyback proposal of the board of directors, until the completion of the offer, the promoters of the company can not share the shares through a share exchange, off-market or inter-transfer.
On February 4, Coal India Board had approved the buyback of 4.46 crore equity shares, on which the company will spend Rs 1,050 crores on the basis of Rs 235 per equity share.
On the other hand, the share of Coal India in the BSE opened at Rs 215.60 against the previous closed level of Rs 215.30 today. Coal India’s share is under some pressure today. At around 10:30, the company’s stock is falling by Rs 1.45, or 0.67%, at the price of Rs 213.85. In the last 52 weeks, the share of Coal India has been a peak at Rs 316.55 and lower level of 212.00 rupees.
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