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Markets watchdog Securities and Exchange Board of India (SEBI) declared that the state-controlled Coal India has been exempted from complying with regulations regarding its proposed buyback scheme for 4.46 crore shares. Coal India, a week earlier, had filed an application with SEBI seeking exemption from the strict enforcement of the buyback norms.
SEBI in its new order said that the application has been necessitated on account of the transfer of 4,46,80,850 equity shares of Coal India which were held by the promoter (government), to the asset management company of the Bharat 22 ETF in the month of February. The promoter said additional offering period of Bharat 22 ETF was opened and closed on February 14, 2019.
Coal India, on February 4, had announced the approval of buyback of 4.46 crore equity shares by the company’s board. The buyback constitutes of about 9.86% (stand-alone basis) of an aggregate of fully paid-up equity capital at a price of Rs. 235 per equity share for an aggregate consideration of Rs. 1,050 crore.
The state-owned miner in its application declared that 15% of the number of equities, in the proposed buyback, will be reserved for small shareholders which will benefit a larger number of such small shareholders. The company also said that the proposed transfer equity shares will occur during the date of passing the resolution (i.e. 04/02/19) and the closure of such offer.
