London-listed Vedanta Resources, which proposes to buy a maximum of 27,337,819 shares through market purchases at a minimum price of $0.10 per share, will seek renewed approval from shareholders for this. The buy back amounts to about 10 per cent of the company's equity.
In a recent notice, the company sought shareholders' approval to renew the clearance given at last year's annual general meeting, which is due to expire at this year's AGM, scheduled on August 1.
During the year, the mining and exploration company did not purchase any of its shares under this programme.
The authority being requested will last until the conclusion of the AGM in 2014 or on October 1, 2014, whichever is earlier.
The resolution specifies the maximum number of shares that may be purchased (being approximately 10 per cent of the company's issued share capital, excluding treasury shares, as at June 17, 2013), the notice said.
Any shares purchased under with the approval of shareholders will either be treated as cancelled or held as treasury shares. Listed firms, with authorisation from shareholders, may buy and hold their own shares in treasury instead of cancelling them immediately.
Shares held as treasury shares can in the future be cancelled, re-sold or used to provide shares for employee share schemes.