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Coal India shares slip over 2% on lower-than-expected buyback plan

Shares of Coal India on Tuesday slipped over 2 per cent after the company's board decided to buy back its shares at a cost of Rs 3,650 crore.

Photo: Reuters Photo: Reuters

Shares of Coal India on Tuesday slipped over 2 per cent after the company's board decided to buy back its shares at a cost of Rs 3,650 crore.

The stock was the worst performing stock on the bourses and hit an intraday low of Rs 313.50, down 2.18 per cent on the BSE.

About 10.89 crore shares would be bought back at Rs 335 per share, CIL sources said.

Traders say quantum of buyback is quite small and will not create excitement in market, as against expectations of Rs 6000 crore.

Lower-than-expected buyback amount could potentially alleviate some investor concerns around dividend, say analysts at Citigroup.

(With inputs from Reuters)