Coal India, the largest government promoted coal producer in the country, had announced buyback offer. Accordingly, Government of India that holds 79.78% as on December ended 2016, garnered nearly Rs 2638 crore post buyback from CIL. The stock of CIL has tumbled nearly 13.8% since the announcement of buyback on March 03, 2017.
CIL bought 7,88,42,816 shares from government out of the total offer of 10,89,55,223 equity shares @ Rs 335 per equity share. CIL's board had approved the buyback offer of shares amounting to Rs 1001.8 crore on March 03, 2017.
However, on March 10, 2017 the board in reconsideration of the proposal had decided not to go ahead with the buyback, a factor which was overruled by the three subsidiaries of CIL, Mahanadi Coalfields Ltd., Northern Coalfields Ltd., and South Eastern Coalfields Ltd., which eventually undertook the buyback.