State-run Coal India Ltd (CIL) said its Board has approved buyback of 10.89 crore shares worth Rs 3,650 crore. In the last one year, CIL has seen depletion in its cash reserve by 18% or Rs 8,700 crore to Rs 38,300 crore as on March 2016. "The company by way of special resolution...has approved the buyback of not exceeding 10.89 crore equity shares of the company...at a price of Rs 335 per equity shares payable in cash for an aggregate consideration of Rs 3,650 crore," CIL said in a BSE filing. Coal India's shares were trading 1.14% down at Rs 316.85 apiece on BSE in the morning trade. The buyback wil help the company generate cash for the government and help push the valuation for any divestment.

Source: dna July 12, 2016 07:03 UTC