InvestorQ : Can you tell me about the share buyback announced by NTPC?
Niti Shenoi made post

Can you tell me about the share buyback announced by NTPC?

ishika Banerjee answered.
2 years ago

NTPC announced share buyback worth Rs.2275 crore along with the announcement of its quarterly results for the Sep-20 quarter. NTPC will buy back 19.78 crore shares at Rs.115 per share. This amounts to a 28% premium over the market price and the company may be actually paying a steep premium to facilitate the disinvestment revenues of the state.

The buyback of shares is expected to be completed by January 2021. NTPC has fixed 13 November, 2020 as the record date for the purpose of ascertaining the eligibility of shareholders for buyback of equity shares. All shareholders whose names appear in the books on this date will be eligible to participate in the buyback.

The buyback had been delayed because it awaited SEBI approval for exemption to NTPC from certain buyback norms for the proposed merger of its wholly-owned subsidiaries with the parent company. Normally, when an amalgamation is in process, SEBI regulations do not permit buyback. However, as a special case it has been permitted.

The scheme of amalgamation of NTPC pertains to the merger of Nabinagar Power Generating Company Ltd and Kanti Bijlee Utpadan Nigam Ltd with NTPC. With the exemption, NTPC can go ahead with the buyback even as the amalgamation is still in progress.