National Mineral Development Corporation Surges On Share Buyback Plan

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. 

The announcement from both National Mineral Development Corporation and Moil were made after market hours yesterday. 

India's biggest iron ore miner NMDC informed stocks exchanges that a board meeting is scheduled for June 7 to consider a share buyback proposal. 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.

The board of manganese-ore miner Moil will also meet on June 7 to consider a buyback proposal. 

The state-run firms, however, did not disclose the number of shares they are planning to buy back. 

Shares of National Mineral Development Corporation closed up 4.4 per cent at Rs 90.15 while Moil advanced 5.19 per cent to close at Rs 233.20. In comparison, the Nifty ended flat. (With Agency Inputs)