NMDC Share price: Company submits buyback offer to BSE

The Board of Directors of NMDC Limited on November 10, 2020 passed a resolution to buyback Equity Shares of the Company not exceeding 13.12 cr fully paid-up Equity Shares of face value Re. 1/- each from all the existing shareholders / beneficial owners of Equity Shares of the Company as on Record Date, on a proportionate basis, through the “Tender Offer” process, at a price of Rs 105 (Rupees One Hundred Five only) per Equity Share payable in cash, for an aggregate consideration not exceeding of Rs 1378 cr.

The NMDC Buyback Offer Size represents 5.00% and 5.05% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of the Company, respectively, for the financial year ended March 31, 2020 (the last audited standalone and consolidated financial statements available as on the date of the Board Meeting approving the Buyback) and is within the statutory limits of 10% of the aggregate of the fully paid-up equity share capital and free reserves as per audited financial statements of the Company under the Board of Directors approval route as per the provisions of the Companies Act, 2013. The maximum number of Equity Shares proposed to be bought back represents 4.29% of the total number of Equity Shares in the issued, subscribed and paid-up equity share capital of NMDC.

The maximum amount required by NMDC for the said Buyback will not exceed Rs 1378 cr and is within permitted limits. The current share price of NMDC is Rs 114 and the current market cap of the company is near Rs 35000 cr. The 52 week high on the company is near Rs 140.

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The funds for the Buyback will be met out of internally generated cash resources of NMDC. The Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account and the details of such transfer shall be disclosed in its subsequent audited balance sheet. The Company confirms that as required under Section 68(2) (d) of the Companies Act, 2013 and Regulation 4(ii) of Buyback Regulations, the ratio of the aggregate of secured and unsecured debts owed by the Company shall not be more than twice the paid-up capital and free reserves after the Buyback.