Coal India Limited Buyback – Review, Offer Details, Price, Dates & more
Last Updated Date: Nov 16, 2022In this article, we will discuss the Coal India Limited Buyback offer, buyback price, buyback size, record date, company financial, buyback necessity and its impact on the company.
To track the real time share price of this Buyback, click on this link – Coal India Share Price
Coal India Limited Buyback Details
| Buyback Type | Tender Offer |
| Buyback Opening Date | – |
| Buyback Closing Date | – |
| Buyback Offer Amount | Rs. 10,50,00,00,000/- |
| Buyback No. of Shares | 4,46,80,850 |
| Face Value | Rs. 10/- |
| Date of Buyback Approval | February 4, 2019 |
| Date of Public Announcement | February 4, 2019 |
| Buy Back Price | Rs. 235/- |
| Buy Back Premium | 5.83% |
Coal India Buyback Opening and Closing Date
The starting and closing dates of this buyback are NA.
Coal India Buyback Cash Offer
The Cash Offer to Buy-back up to 4,46,80,850 (Four crores forty-six lakhs eighty thousand eight hundred fifty only) fully paid-up equity shares of the Company of face value of Rs. 10 each.
Coal India Buyback Record Date
The decided record date is Friday, February 15, 2019.
Coal India Buyback Price
At a price of Rs. 235/- (Rupees Two hundred thirty-five only) per Equity Share.
Coal India Buyback Size
The Buyback is for an aggregate amount not exceeding Rs. 10,50,00,00,000(Rupees One thousand fifty crores only).
Coal India Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | |||||
| 40% | |||||
| 60% | |||||
| 80% | |||||
| 100% |
Profit is calculated from 12th May 2019 share price i.e. Rs.54.15 per share of Coal India Limited.
According to the above table, if a share owner applies for 1000 shares of Coal India Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.56 per share & receive Rs.370 as profit amount & 0.68% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.56 & receive a profit of Rs.1,110 @ 2.05% profit percentage.
Coal India Limited Buyback Overview
The Company has a manpower of 2,88,687 as on January 1, 2019. As of January 1, 2019, the Company operated 369 mines in 82 mining areas spread over nine provincial states of India of which 174 are underground mines, 177 are opencast mines and 18 are mixed mines.
The Company also operate 16 coal washeries, (12 coking coal and 4 non-coking coal) and manage other establishments including workshops and hospitals. The Company has 27 training institutes one of them being Indian Institute of Coal Management (IICM) which is an excellent training centre which imparts multi disciplinary management development programmes to our executives, officers and management trainees.
Our major consumers include power and steel companies, cement, fertilizer and brick kilns producers, amongst other industries.
Presently, the Company has nine wholly owned subsidiaries (seven coal producing companies, one service oriented company and one foreign subsidiary company), namely, Bharat Coking Coal Limited, Central Coalfields Limited, Eastern Coalfields Limited, Western Coalfields Limited, South Eastern Coalfields Limited, Northern Coalfields Limited, Mahanadi Coalfields, Central Mine Planning & Design Institute Limited (service oriented company) and Coal India Africana Limitada (overseas subsidiary was incorporated in Mozambique).
The mines of North Eastern Coalfields in Assam are directly managed by the Company.
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Company Finances – Coal India Limited
The salient financial information of the Company extracted from the audited standalone financial statement for last three years being March 31, 2018, March 31, 2017, and March 31, 2016, and unaudited limited reviewed financial results for six month period ended September 30, 2018, prepared under IND-AS are given below:
(Rs.in Crore)
| Key Financials | Half yearly results till September 30, 2018 |
For the year ended March 31, 2018 |
For the year ended March 31, 2017 |
For the year ended March 31, 2016 |
| (Unaudited) | (Audited) | (Audited) | (Audited) | |
| Revenue from Operations | 92.54 | 370.37 | 311.18 | 177.16 |
| Other Income | 991.25 | 9,571.03 | 15,004.75 | 17,129.39 |
| Total Income | 1,083.79 | 9,941.40 | 15,315.93 | 17,306.55 |
| Total Expenses (excluding interest & depreciation and amortisation) |
371.74 | 866.29 | 922.97 | 645.74 |
| Interest | 14.45 | -257.86 | -136.23 | -123.80 |
| Depreciation | 8.38 | 18.14 | 17.52 | 16.41 |
| Profit Before Exceptional Items and Tax |
689.22 | 9,314.83 | 14,511.67 | 16,768.20 |
| Exceptional Items: Expense / (Income) |
– | – | – | – |
| Profit Before Tax | 689.22 | 9,314.83 | 14,511.67 | 16,768.20 |
| Provisions for Tax (including Deferred Tax) |
9.50 | 21.41 | 11.14 | 175.20 |
| Profit/(Loss) discontinuing operation |
– | – | – | – |
| Share in JV’s/Associates profit/(loss) |
– | – | – | – |
| Profit/ (Loss) for the period | 679.72 | 9,293.42 | 14,500.53 | 16,593.00 |
| Other Comprehensive Income | 0.44 | 5.36 | 3.40 | -13.44 |
| Total Comprehensive Income | 680.16 | 9,298.78 | 14,503.93 | 16,579.56 |
| Paid-up Equity Share Capital | 6,207.41 | 6,207.41 | 6,207.41 | 6,316.36 |
| Reserve & Surplus net of Miscellaneous expenditures to the extent not written off excluding revaluation reserves and capital reserves |
7,167.46 | 6,487.30 | 7,712.39 | 9,729.45 |
| Net worth excluding revaluation reserves, capital reserves and net of Miscellaneous expenditures to the extent not written off |
13,374.87 | 12,694.71 | 13,919.80 | 16,045.81 |
| Total Debt, excluding working capital loans |
– | – | – | – |
Coal India Limited Buyback Dates
| Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares | Monday, February 4, 2019 |
| Date of publication of Public Announcement for the Buy-back | Wednesday, February 6, 2019 |
| Record Date for determining the Buy-back Entitlement and the Eligible Shareholders | Friday, February 15, 2019 |
| Buy-back opens on / Buy-back Opening Date | – |
| Buy-back closes on / Buy-back Closing Date | – |
| Last date of verification by Registrar to Buy-back | – |
| Last date of intimation to the Stock Exchange regarding acceptance or non-acceptance of tendered Equity Shares by the Registrar and Manager to the Buy-back | – |
| Last date of settlement of bids on the Stock Exchange | – |
| Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker | – |
| Last date of extinguishment of Equity Shares bought back | – |
Necessity of Coal India Limited Buyback
The Buyback is being undertaken by the Company to return surplus funds to its Shareholders. Additionally, the Company’s management strives to increase Shareholders’ value and the Buyback would result inter alia in the following:
- The Buyback involves allocation of higher number of equity shares as per their entitlement or 15% of the number of equity shares which the Company proposes to Buyback reserved for small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public Shareholders, who would get classified as “Small Shareholders;
- The Buyback may help in improving return on equity, by reduction in the equity base, and other financial ratios, thereby leading to long term increase in Shareholders’ value; and
- The Buyback gives an option to the Eligible Shareholders to either participate in the Buyback and receive cash in lieu of equity shares accepted under the Buyback or not participate in the Buyback and enjoy a resultant increase in their percentage shareholding in the Company post the Buyback without any additional investment.
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Impact of Coal India Limited Buyback on the Company
We believe that the Buyback is not likely to cause any impact on the profitability or earnings of the Company, except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
Assuming the response to the Buyback is to the extent of 100% (full acceptance) from all the Eligible Shareholders upto their entitlement and to the extent the Promoter has agreed to tender, the aggregate shareholding and the voting rights of the Promoter of the Company, may [increase/decrease] to [●]% post Buyback from the current pre Buyback shareholding of 72.91%, and the aggregate shareholding of the public shareholders in the Company may [increase/decrease] to [●]% post Buyback from the current pre Buyback shareholding of 27.09%.
The debt-equity ratio post Buyback on a standalone as well as consolidated basis will be compliant with the permissible limit of 2:1 prescribed under Section 68(2)(d) of Companies Act and Regulation 4(ii) of the Buyback Regulations, even if the response to the Buyback is to the extent of 100% (full acceptance) from all the Eligible Shareholders upto their Buyback Entitlement.
Salient financial parameters consequent to the Buyback based on the last audited standalone and consolidated financial statements of the Company for the financial year ended March 31, 2018 are as under:
| Parameters | Standalone | Consolidated | ||
| Pre- Buyback |
Post Buyback |
Pre- Buyback |
Post Buyback |
|
| Net worth (Rs. in Crore) | 12,694.71 | 11,644.71 | 19,827.36 | 18,777.36 |
| Return on Net worth (%) | 73.25 | 79.85 | 38.60 | 40.76 |
| Earnings Per Share (of Rs. 10 each) | 14.97 | 15.08 | 11.31 | 11.39 |
| Book Value per Share (Rs.) | 20.45 | 18.90 | 31.94 | 30.47 |
| P/E as per the latest audited financial results |
18.92 | 18.79 | 25.05 | 24.87 |
| Total Debt/ Equity Ratio | – | – | 0.08 | 0.08 |
Basis of Calculating Coal India Buyback Price
The Buyback Price has been arrived at after considering many factors, including, but not limited to, the trends in the volume weighted average market prices of the Equity Shares of the Company on the Stock Exchanges where the Equity Shares of the Company are listed, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the earnings per Equity Share.
More on Coal India Buyback Price Calculation
Further, the Buyback Price of Rs. 235/- (Rupees two hundred and thirty five only) per Equity Share represents:
- A premium of 3.47% and 3.49% over the volume weighted average market price of the Equity Shares on the BSE and on the NSE respectively for two weeks preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback, i.e. January 30, 2019, and
- A premium of 4.24% and 4.35% over the closing market price of the Equity Shares on BSE and NSE respectively, as on the date of the intimation to the Stock Exchanges for the Board Meeting to consider the proposal of Buyback, i.e. January 30, 2019, and
- A premium of 5.26% and 5.29% over the closing market price of the Equity Shares on BSE and NSE respectively, as on the date preceding the Board Meeting to consider the proposal of Buyback.
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Source of Funds for the Buyback
The Buyback would be financed out of free reserves and/or such other sources as may be permitted by law through “Tender Offer” route and as required by the Buyback regulations and the Companies Act, and on such terms and conditions as the Board may deem fit.
The Company shall transfer from its free reserves a sum equal to the nominal value of the equity shares bought back through the Buyback to the Capital Redemption Reserve Account and the details of such transfer shall be disclosed in its subsequent audited financial statements.
The Company has confirmed that the funds for the Buyback will be made available out of its internal accruals and not out of funds borrowed, if any, from banks and financial institutions
Coal India Limited – Manager to the Buyback
| IDBI Capital Markets & Securities Limited 6th Floor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India Tel: +91 (22) 22171700 Fax: +91 (22) 22151787 Contact Person: Mr. Sumit Singh Email: cil.buyback@idbicapital.com Website: www.idbicapital.com SEBI Registration Number: INM000010866 Validity Period: Permanent CIN: U65990MH1993GOI075578 |
Coal India Limited – Registrar to the Buyback
| Alankit Assignments Limited 205 – 208, Anarkali Complex, Jhandewalan Extension, New Delhi – 110055 Tel: +91 (11) 42541971, +91 (11) 42541958 Fax: +91 (11) 23552001 Contact Person: Mr. Abhinav Agarwal / Mr. Lalita Prasad Email: cilbuyback@alankit.com Website: www.alankit.com SEBI Registration Number: INR000002532 Validity Period: Permanent CIN: U74210DL1991PLC042569 |
Coal India Limited Contact Details
| Company Contact Details |
| Coal India Limited Corporate Identification Number (CIN): L23109WB1973GOI028844 Registered Office: Premises no-04-MAR, Plot no-AF-III, Action Area-1A, Newtown, Rajarhat, Kolkata 700156 Tel.: +91 (33) 23246526 Fax: + 91 (33) 23246510 Website: www.coalindia.in E-mail: mviswanathan2.cil@coalindia.in Contact Person: Mr. M. Viswanathan, Company Secretary and Compliance Officer |
Coal India Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
FAQs of Coal India Buyback
What is the Coal India Buyback Period?
Coal India Buyback Period is briefly the time interval starting from date of declaration of results of the postal ballot through remote e-voting i.e. February 6, 2019. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NA.
What type of buyback is Coal India Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the Coal India Buyback Offer?
Coal India Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 4,46,80,850 Fully paid up Equity shares, adhering to the buyback price.
When Coal India Buyback offer will start?
As per the released schedule, the Coal India Buyback offer will start on NA. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Coal India Buyback at all times, we ensure you have access to the right data.
When is the closing date of Coal India Buyback?
For the ease in access to the dates and related aspects, we have segregated the closing date of Coal India Buyback. The buyback would stay open from NA, and would close on NA. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Coal India Buyback?
The amount at which the shares are taken back by the company is referred to as Coal India Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.235, the price paid to each eligible shareholder.
What is the record date for Coal India Buyback offer?
Record date of Coal India Buyback is February 15, 2019. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Coal India Buyback?
Coal India Buyback Size is Rs. 10,50,00,00,000 and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for Coal India Buyback?
Objective of the Coal India Buyback is to enhance the total return made by equity shareholders. Herein, the excessive funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to Coal India Buyback offer?
Designated registrar of Coal India Buyback is Alankit Assignments Limited. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address and more.
Who is the Manager to the Coal India Buyback offer?
Manager to the Coal India Buyback is IDBI Capital Markets & Securities Limited. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check Coal India buyback acceptance ratio?
Acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buyback and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find Coal India Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the Coal India Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Coal India Buyback Dates.
What can be the Impact of Coal India Buyback on the Company?
The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on Coal India Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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