NHPC’s board has approved a proposal to buy back shares not exceeding 81.13 crore representing 7.33% of total shares at Rs 32.25 for a consideration of Rs. 2,616.59 crore.
“The company has fixed record date as February 20, 2017, for the purpose of buyback of equity shares of the company,” NHPC Ltd told BSE on Friday.
According to a statement, the company will determine the entitlement and names of the shareholders who are eligible to participate in the buyback and who would be sent letter of offer and tender forms for selling their shares.
The board of directors had approved the proposal for buyback of fully-paid shares from all shareholders not exceeding 10% of the paid-up equity capital and free reserves as on March 31, 2016, at a meeting held on February 7, 2017. Under the buyback plan, the shares bought by the company are extinguished from the shareholding. Thus the shareholding is reducing by that much number of shares and capital.
Promoter of the company (the central government) held 74.51 per cent, while FIIs, financial institutions and banks and other public bodies have 4 per cent, 10.34 per cent and 11.15 per cent, respectively, as on February 3, 2017, the company said in the BSE filing.
Earlier this week, NHPC had posted a 26 per cent jump in net profit at Rs. 214.69 crore for the third quarter compared with Rs. 170.57 crore in same period a year ago.
(With inputs from agencies)