NMDC board approves up to Rs 1,378-crore buyback plan

State-owned NMDC on Wednesday said its board has approved a share buyback proposal of up to Rs 1,378 crore.

In a BSE filing, the company said the decision was taken at a meeting of its board on Tuesday.

"The board approved a proposal for buyback of 13,12,43,809 fully paid-up equity shares of a face value of Re 1 each from the company's shareholders at a price of Rs 105 per equity share payable in cash," NMDC said.

The buyback will be for an aggregate consideration not exceeding Rs 13,78,05,99,945 (offer size), representing 5 per cent and 5.05 per cent of the total fully paid-up equity share capital and free reserves, respectively, it added.

The company on Tuesday posted an over 10 per cent rise in consolidated net profit to Rs 772.53 crore for the September 2020 quarter, compared with Rs 701.54 crore net profit in the year-ago quarter.

NMDC, under the steel ministry, is the country's largest iron ore miner. Besides iron ore, it is also involved in the exploration of a wide range of minerals like copper, rock phosphate, lime stone, dolomite and gypsum.