Steel Authority of India Limited (SAIL), on Friday, announced that it had received the approval of the shareholders to buy back its shares.
“The buyback of shares is an enabling provision . Today there was no provision in the Articles of Association of the company.
“So, we have made this provision and got this approved by the shareholders. If there is a need or our board decides , we can buy back shares,” Chairman C. S. Verma told reporters after the annual general meeting of the company.
SAIL has been sitting on cash reserves of Rs.6,415 crore as on March, 2012, and is among the select State utilities for disinvestment by the government. In July, the Union Cabinet had approved sale of its 10.82 per cent stake in SAIL.
Expression of Interest
Mr. Verma said the timing of disinvestment would be decided by the Department of Disinvestment.
The company would soon invite expression of interest (EoI) for selecting mine developers and operators (MDOs) for developing Chiriya mines in Jharkhand, which holds proven reserves of over 1.8 billion tonnes and is among the largest iron ore mines in Asia.