State-run Coal India Ltd (CIL) and its subsidiaries have agreed to buyback their shares held with the centre, government sources privy to the developments told CNBC-TV18.

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Government is close to finalising share buyback plan and given this fact, the possibility of a Coal India offer for sale (OFS) in the current financial seems ruled out.

As of June 30 exchange filing, the government holds 78.32 percent in Coal India. Government sources have not shared any detail on the size of the buyback.

Last buyback by CIL was reportedly done in 2016, when the company bought back less than two percent of its shares from the government.

CIL stock was then priced around Rs 335, while today the mining company's stock is trading around Rs 274 levels.

The government is planning to do a few buybacks this fiscal to meet its Rs 80,000 crore FY19 divestment target.

And the probability of an ambitious OFS schedule from department of investment and public asset management (DIPAM) is remote, due to valuation concerns of central public sector enterprises (CPSE).

In August, the department of disinvestment had done "non-deal" international roadshows showcasing Coal India and ONGC to US investors.

First Published:Sept 18, 2018 10:19 PM IST