India’s largest power generating company, state-owned NTPC, on Monday received the board’s approval for a share buyback. The board of directors approved the buyback of up to 197.8 million equity shares for Rs 2,275.74 crore, as part of capital restructuring, said the company in a statement.
In a filing with the BSE, NTPC said: “The board of directors of the company in a meeting held on November 2, 2020, has inter-alia approved buyback of the fully paid-up equity shares of the company of face value of Rs 10 each.” The board approved the proposal for buying back 197.8 million fully paid-up equity shares at Rs 115 per unit for an aggregate consideration not exceeding Rs 2,275.75 crore, according to the filing.
The Centre is relying on the share buyback by select public sector utilities to meet its disinvestment target of Rs 2.1 trillion for 2020-21. Reports suggest firms that may consider buybacks are Coal India, Kudremukh Iron Ore, RITES, NMDC, and Engineers India.
The company also declared its second-quarter results on Monday. NTPC registered a profit before tax (PBT) of Rs 3,666.93 crore during the July-September period, a 4.84 per cent increase over the corresponding period last financial year. On a half-year basis, the PBT was Rs 6,564.72 crore, against Rs 6,660.11 crore in H1FY20. On a standalone basis, in Q2 FY21, total income was Rs 26,023.33 crore, against Rs 23,658.23 crore in Q2FY20.
Source: Business-Standard