NTPC, the country's largest energy conglomerate, on Monday said its board has approved share buyback of 19.78 crore equity shares for Rs 2,275.74 crore. The state-owned firm will buyback shares at a price of Rs 115 per share, a 29 per cent premium against the Monday's closing price of Rs 89.25.
"The board of directors of the company in a meeting held on November 2, 2020 has inter-alia approved ... buyback of not exceeding 19.78 crore fully paid-up equity shares of face value of Rs 10 each (representing 2 per cent of the total number of fully paid-up equity shares in the paid-up share capital of the company) at a price of Rs 115 payable in cash for an aggregate consideration not exceeding Rs 2,275.74 crore," NTPC said in a filing to the Bombay Stock Exchange.
The company has fixed November 13, 2020 as the record date for the purpose of ascertaining the eligibility of shareholders for buyback of equity shares, it said.
The buyback represents 2.19 per cent and 2.01 per cent of the aggregate of the fully paid-up equity share capital and free reserves as on March 31, 2020.
The company further stated that the public announcement setting out the process, timelines and other requisite details will be released due course.
Last month, capital markets regulator SEBI had granted exemption to NTPC from certain buyback regulations for the proposed merger of its wholly-owned subsidiaries with the parent company. In November 2019, NTPC's board of directors had approved merger of its subsidiaries - Nabinagar Power Generating Company Ltd and Kanti Bijlee Utpadan Nigam Ltd - with NTPC.
The board also approved extension of tenure Chairman and MD Gurdeep Singh till 31 July, 2025.
In a separate development, NTPC reported 7 per cent rise in net profit at Rs 3,504 crore for the second quarter ending 30 September, 2020 as against Rs 3,262 crore in the same period last year. Revenue from operations grew 8 per cent to Rs 24,677 crore, from Rs 22,673 crore in September 2019.
Meanwhile, shares of NTPC settled at Rs 89.25, up 1.88 per cent, at the Bombay Stock Exchange on Monday.