National Mineral Development stock up over 5% on share buyback proposal


Mumbai : Shares of National Mineral Development Corporation (NMDC) and Moil surged today after both the state-run miners said that their boards will consider share buyback proposals. National Mineral Development Corporation shares surged as much as 5.2 per cent to Rs 91 while Moil soared nearly 15 per cent to Rs 255 on the BSE. 

NMDC said on Thursday that its Board of Directors will meet next week to consider a proposal to buyback company's shares. The state-run firm, however, did not elaborate upon the number of shares it is planning to buyback.

"A meeting of the Board of Directors of the company will be held on June 7, 2016, inter alia, to consider the proposal for buyback of the fully paid-up equity shares of the company of face value of Re 1 each," it said in a BSE filing.

The government held 80% stake in the country's largest iron ore miner, as of March 2016. The development comes amidst the government proposing to put up about 39.64 crore shares through Offer for Sale(OFS) which can fetch an estimated Rs 3,600 crore at the current market price.