Results 1 to 1 of 1
  1. #1
    Hot Member
    Join Date
    Nov 2012


    Thumbs up RIL repurchases 38% of targeted shares

    Follow us on Social Media

    Mumbai: While speculation that Reliance Industries (RIL) may extend its buyback activity gained momentum ahead of its December quarter results , the company bought back 4.62 crore shares, or 38% of is intended buyback quantity, as on January 17, a day prior to conclusion of the re-purchase exercise it started in February 2012.
    If RIL ends the process— in which it has mopped up shares worth R3,360 crore from the open market — it would be the biggest buyback carried out by an Indian company so far. This, however, accounts for close to 38% of the targeted buyback of up to R10,440 crore that the company announced last January.
    Traders speculated about whether the company would extend its buyback activity by another year. However, RIL made public no such decision when it announced its quarterly numbers that beat Street expectations.
    “Given the cash hoarding with the company, it was rumored that RIL may extend the buyback programme also as to benefit from a flexible buyback directive that still prevails,” said a trader.
    According to him, RIL may consider prolonging the re-purchase programme that supports its share prices before the Securities and Exchange Board of India (Sebi) finalises its new guidelines on buybacks.
    According to latest proposals, a company would have to purchase at least 50% of the shares it planned to buy back and might not be allowed to raise further capital for two years.
    The buyback during the last one year, however, seems to have supported the prices fairly.



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts