NMDC fixes buy-back of shares at Rs 105

NMDC fixes buy-back of shares at Rs 105

Share of NMDC slumped more than 4.4% to Rs 89.85 apiece on NSE, the most since August, triggered by flat revenue remained and margin contraction in the first full quarter of operations after the nation eased the coronavirus lockdown curbs.
The state-run iron ore miner has also fixed a share buyback price of Rs 105 per share.
The board approved buyback 13.12 crore fully paid-up equity shares of face value Rs 1 each, representing 4.29% of the total number of fully paid-up equity shares, payable in cash for an aggregate consideration not exceeding Rs 1,378.05 crore.

This is the third buy-back by the public sector mining major since 2016. During the previous such exercise it undertook in February 2019, NMDC bought back more than 10.20 crore shares at Rs 98 each. The aggregate consideration was not more than Rs 1,000 crore. In September 2016, the buyback was for up to 80.08 crore shares at Rs 94 each for an aggregate amount not exceeding Rs 7527.76 crore.
NMDC has posted a profit of Rs 774 crore for the second quarter ended September 30, 2020, up 10% over Rs 703 crore it logged for the corresponding quarter of the last fiscal.
The company posted revenue of Rs 2,230 crore for the second quarter, down 0.5% at Rs 2,242 crore over the corresponding quarter last fiscal.

During Q2, NMDC produced 56.37 lakh tonnes of iron ore in the second quarter, up 13 per cent, and its sales were at 66.02 lakh tonnes, up 14% from the corresponding quarter previous year.

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