Oil India Ltd will buy back 5.04 crore of its shares for a little over Rs 1,085 crore as part of the government’s push to cash-rich PSUs to part with their surplus either by paying higher dividends or through share buybacks, to help meet revenue targets.
In a regulatory filing, OIL said its board had approved buyback of shares at an aggregate of no more than 10% of the fully paid-up equity share capital and free reserves of the company.
The board approved “the buyback by the company of its fully paid-up equity shares of Rs 10 each not exceeding 5.05 crore equity shares (representing about 4.45% of the total number of equity shares in the paid-up share capital of the company) at a price of Rs 215 per equity share payable in cash for an aggregate consideration not exceeding Rs 1,085.72 crore,” it said.
The nation’s second large oil explorer has a little less than Rs 20,000 crore of reserves. Read More