The share buyback of worth Rs 4,022 crores has been approved by the board of Oil and Natural Gas Corp. Ltd, as per their regulatory filing today. The share buyback approved by ONGC ’s board consists of equity shares not exceeding 25.29 crores or 1.97% of all equity, at Rs. 159 apiece.
In the week earlier, Indian Oil Corp. Ltd (IOC) board approved a buyback of up to 29.76 crore equity shares or 3.06% of all paid up capital at Rs 149 per share, totalling to a worth of Rs. 4,435 crores. The company also declared an interim dividend worth Rs 6,556 crores.
The current development comes after the government’s push to cash-rich public sector undertakings (PSUs) to utilize their funds to buy back shares or pay a higher dividend, to achieve its fiscal deficit target of 3.3% for 2018-19.
The government is currently planning to raise at least Rs. 5,000 crore through the proposed share buyback offers of state-owned firms like Coal India Ltd, BHEL and Oil India Ltd. The Department of Investment and Public Asset Management (DIPAM), has instructed all cash-rich PSUs to go for share buybacks, in order to raise targeted Rs. 80,000 crores for the government.