State-owned Indian Oil Corporation Ltd.’s current credit has enough headroom to absorb higher leverage arising from a planned Rs 11,000 crore share buyback and interim dividend payout, Fitch Ratings said on Monday.
The board of IOC had last week approved a buyback of up to 29.76 crore equity shares, or 3.06 percent of share capital, at Rs 149 per share aggregating to Rs 4,435 crore. It also approved payment of Rs 6,556 crore as interim dividend to shareholders.
“IOC will retain adequate headroom under its ‘BB+’ standalone credit profile despite higher leverage cause by a planned share buyback and interim dividend, announced on Dec. 13,” the agency said in a statement. Read More
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