NMDC jumps up on buyback plans

NMDC is a smart gainer on the bourses today. Figuring amongst the top gainers on the BSE, intra day, the stock rose over 5% at Rs.91 and is currently at Rs.90, up some 4.2%. Its 52-week high is at Rs.125.

The company announced yesterday evening that its Board will be meeting on 7th June to consider the proposal for Buy Back of the fully paid-up equity shares of the Company of face value of Re.1 each.

In pursuance of the Internal Code of Conduct for Prevention of Insider Trading in dealing with securities of NMDC, the trading window shall remain closed from June 03, 2016 to June 09, 2016 (both days inclusive), in connection with the above scheduled meeting.

Currently the Govt of India holds 80% stake.

The central public sector enterprises (CPSE)  is known to be sitting on a cash reserve of Rs 2.55 lakh crore, which the government intends to utilise to help prop up share prices of the public enterprises.

The Govt, like the private sector will be using the buyback mode to raise part of its Rs.56,500 crore divestment target.