Divestment and buyback

Coal India divestment happened few days back and now there would be buyback by the company. Why are these happening?

Coal india had buyback in September 2016 and had OFS few days back only for it’s employees .since almost all listed public sectors are coming out with buyback Coal India may follow .in simple words it mean GOI need money …buyback and OFS do the same for GOI .

Okay with OFS, but how’d buyback fetch Govt. money?

Buyback means company is buying shares and all type of shareholders be it promoters and non promoters are selling so in public sectors GOI is biggest seller to the company.all bought back shares are extinguished /killed thus reducing the serviceable equity for company.

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