INSUBCONTINENT EXCLUSIVE:
State-owned iron ore producer NMDC has decided to fix January 18 as date to pick shareholders who would be eligible to participate in
company's nearly Rs 1,000-crore share buyback.
"NMDC has fixed January 18, 2019 as record date for determining entitlement and names of
eligible shareholders/beneficial owners to whom letter of offer will be sent and will be eligible to participate in buyback of 10,20,40,815
shares fully paid-up equity shares of company," NMDC said in a BSE filing on Wednesday.
The government holds 72.43 per cent stake in
ratio is 22.6 per cent and advise that traders who want to participate in buyback can buy 2,000 shares from cash market in three different
demat accounts at current market price of Rs 91 and not more than 2,000 shares in an individual account and simultaneously hedge by selling
one lot of January futures in a single account at 91 where lot size is 6,000
brokerage firm said in a report.
Shares of company settled at Rs 91.40, down 3.74 per cent against its previous close.
Table
The brokerage
house added that breakeven point is buyback price
So, when stock price reaches buyback price, traders should exit from strategy without tendering for buyback.
On other hand if and once
quantity is tendered for buyback, one should square-off remaining position immediately, it stated.
