Reliance Energy Board approves buy-back of equity shares.
Reliance Energy Ltd (REL) has informed that the Board of Directors of the Company at its meeting held on March 05, 2008, has approved a buy-back of its outstanding equity shares for an aggregate amount of up to approximately Rs 2,000 crore (US$ 500 million), in two phases.
Reliance Energy Ltd (REL) has informed that the Board of Directors of the Company at its meeting held on March 05, 2008, has approved a buy-back of its outstanding equity shares for an aggregate amount of up to approximately Rs 2,000 crore (US$ 500 million), in two phases.
An amount of Rs 800 crore (US$ 200 million) will be expended in the first phase on the share buyback, pursuant to the approval granted by the Board of Directors. This amount represents 10% of the paid-up equity share capital of the Company, and its free reserves.
Ashish Jain: A further amount of Rs 1,200 crore (US$ 300 million) will be expended in the second phase, subject to necessary approvals by the shareholders, in terms of the provisions of the Companies Act, 1956 and relevant SEBI Guidelines. This amount represents an additional 15% of the paid-up equity share capital of the Company, and its free reserves.
REL will buy-back shares up to a maximum price of Rs 1,600, representing a premium of over 30% to the low of Rs 1,225 recorded during the calendar year 2008, and a premium of approx. 10% to the closing share price on the date of the Board meeting.
