Stock In News: NMDC climbs 5% Today

INDORE, India - June 3, 2016 - PRLog -- Shares of NMDC climbed over 5 per cent in trade on Friday after the mining company informed stocks exchanges that it will consider a proposal of buyback of company's shares when its board of directors meet next week.

In a regulatory filing to BSE , the country's largest iron ore miner said, "A meeting of the board of directors of the company will be held on June 7, 2016, inter alia, to consider the proposal for Buy Back of the fully paid-up equity shares of the Company of face value of Rs. 1 each."

The stock rose 5.26 per cent to hit a high of Rs 91 on BSE.

"In pursuance of the Internal code of conduct for prevention of insider trading in dealing with securities of NMDC, the trading window shall remain closed from June 3 to June 9 (both days inclusive), in connection with the above scheduled meeting," the company added.

The state-run firm, however, did not elaborate upon the number of shares that it is planning to buyback.

Data available on BSE website suggests the government held 80 per cent stake in the company at the end of March quarter.

The development comes amidst the government proposing to put up about 39.64 crore shares through Offer for Sale (OFS) which can fetch an estimated Rs 3,600 crore at the current market price, PTI said in a note.

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