Shares of Indian Oil Corporation rose nearly 3 per cent in early trade on Friday after the company announced a buyback of 3.06 per cent equity shares at a price of Rs 149 per stock for a consideration not exceeding Rs 4,435 crore.The buyback decision was taken by the company's board in its meeting held on Thursday.
The company board also recommended an interim dividend of 67.5 per cent (Rs 6.75 per share) for the 2018-19 fiscal.The government, which holds a 54.06 per cent stake in the company, is expected to participate in the share buyback.
The government is targeting a minimum Rs 5,000 crore through share buyback offers of state-owned firms such as Coal India, BHEL and Oil India Ltd.The government is targeting a minimum Rs 5,000 crore through share buyback offers of various Central Public Sector Undertakings (CPSUs) such as Coal India, BHEL and Oil India.
Besides IOC, at least half a dozen other central CPSUs have disclosed share buyback programmes.
These include NHPC, BHEL, NALCO, NLC, Cochin Shipyard and KIOCL.The scrip was 2.66 per cent up to Rs 140.85 at around 09.38 am while the benchmark BSE Sensex slipped 0.04 per cent to 35,915.23.
It opened at Rs 141.10 on the BSE against its previous closing of Rs 137.20.