ONGC to consider share buyback on December 20

New Delhi: State-owned Oil and Natural Gas Corp (ONGC) Friday said its board will consider buyback of company shares at a meeting on December 20. This follows government pushing cash-rich PSUs to use their funds to buy back shares or pay a higher dividend. The government is looking to bridge budgetary deficit through higher receipts of dividend as well as selling its shares in PSUs in the buyback programmes.

Stock buybacks refer to the repurchasing of shares by the company that issued them. A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors.

ONGC said: "The meeting of Board of Directors of the company will be held on Thursday, December 20, 2018, inter-alia, to consider the proposal for buy-back of the fully paid-up equity shares of the company."