Shares of Indian Oil Corp. Ltd rose over 3% after India’s largest oil firm on Thursday said its board of directors approved the buyback of 29.76 crore equity shares of the company for Rs 4,435 crore. The share buyback price represents a 8.6% premium to IOC’s Thursday closing price of Rs 137.20 on BSE.
Today, the stock rose as much as 3.5% intraday to Rs 142 per share. At 9.33am, the stock was trading at Rs 141.10 per share, up 2.84% from its previous close, while the benchmark Sensex Index was up 0.14% at 35,981.20 points.
The government, which holds a 54.06% 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. Read More