Reliance Industries Buyback Offer Details

Reliance Industries Limited (RIL) announced a share buyback plan on Friday, January 20, 2012. RIL will execute the buyback through purchase of shares from the open market

The upper limit price for the Buyback is Rs.870/- per equity share. What this essentially implies is that RIL will over a period of time, buy its own shares from the market as long as the price is below Rs.870. If the price goes beyond Rs.870/-, then the company would not be entitled to buyback shares above the said price. The upper limit in absolute terms is Rs.10,440 crores.

However, one point that has to be noted amidst all this is that the limits prescribed above are the upper caps and the company may stop the buyback anytime and it is therefore not necessary that entire Rs.10,440 Crores would be spent for buyback or that the company will keep on buying until the price is Rs.870/- per share

Reliance considering Buyback of shares

Reliance Industries Ltd. led by billionaire Mukesh Ambani, has informed the NSE and the BSE that the company is considering a proposal to buyback equity shares at a board meeting scheduled to be held on January 20, 2012

A notice on the BSE website read: "Reliance Industries Ltd. has informed BSE that a meeting of the Board of Directors of the Company will be held on January 20, 2012, inter alia, to consider and approve a proposal for Buy Back of the Company's equity shares in accordance with all applicable provisions of law"

Although there is no announcement in this regard, the speculation is that the buyback could be around 10-12 per cent of the existing equity of Reliance Industries Limited. RIL is India's largest company and the buyback, if materialized is likely to be the biggest in India's history, according to Jagannadham Thunuguntla, Strategist & Head of Research, SMC Global Securities

The buyback will utilise the large pile of cash and cash equivalents (approximately Rs.70,000 crore) lying on Reliance’s Balance Sheet. Currently, the market capitalisation of Reliance Industries is in excess of Rs.2.5 Lakh Crores

The Buyback Price is speculated to be around Rs.850 to Rs.900 per share, although there is no official communication in this regard. Check back this blog for latest updates on Reliance Industries Ltd. Buyback Offer

Buyback of the shares of Amtek Auto Limited

Amtek Auto Limited (520077) has announced buyback of its fully paid-up equity shares of face value of Re. 2/- each from the Open Market through electronic trading mechanism of the Exchange. The Maximum Buyback Price would not exceed Rs.200/- (Rupees Two Hundred Only) per equity share payable in cash for an aggregate amount not exceeding Rs.291 crore

The proposed time table for Buyback is as under:
Date of Opening of the Buyback on BOLT: January 16, 2012
Last date for the Buyback: 24th August 2012 (i.e. 12 months from the date of the resolution passed by the Board of Directors of the company at its meeting held on 25th August 2011) or in case maximum offer size has been exhausted, whichever is earlier. However, the Board reserves the right to close the Buy-back offer at an earlier date in the event the company has bought back, by giving an appropriate notice for such earlier date and completing all formalities in this regard as per relevant laws and regulations

More than 20 companies cancel their IPOs

According to a recent report, at least 22 companies, mainly from real estate and power sector, have called off their initial public offers (IPOs) in this fiscal.

SMC Global Securities stated in a report that even after getting approval from market regulator SEBI, these companies could not open their IPOs within the valid period of one year from the date of approval due to the ongoing turmoil in the capital markets. Sterlite Energy, Jindal Power, Avantha Power, Lodha Developers, Ambiance Real Estate, Kumar Urban Developers, Neptune Developers, BPTP and Raheja Universal are some of the companies in the list

The volatile and highly uncertain market conditions have led many companies to defer their IPOs and many other to look for other alternatives of raising funds

Markets crumbles with biggest fall in two years

It was a terrible day for the markets today on September 22, 2011. A sharp fall in Rupee, coupled with Fed's gloomy outlook on the US economy triggered the biggest fall in the markets since October 2008. The day opened in the red and thereafter continued to take one blow after the other dwelling into complete bloodshed by the end of the day

BSE SENSEX crashed a staggering 704 points or 4.13% and ended at around Rs.16,361. Jaiprakash Associates, DLF, Sterlite Industries, Reliance Industries, Tata Motors and Bharati Airtel amongst the Index closed the day with deep reds. Educomp Solutions, Lanco Infra, Sterling Intl, Shree Renuka Sugars, HDIL and Godrej Industries were some other names from the 'A' Group in BSE which suffered badly

BHEL to split shares

Bharat Heavy Electricals Limited has informed BSE that the shareholders of the Company in the 47th Annual General Meeting (AGM) held on September 20, 2011, have passed the resolution for a split of existing Equity Shares of Rs. 10/- each into FIVE Equity Shares of Rs. 2/- each with effect from the Record date to be fixed by the Board

In another announcement to the BSE, the company has informed that the Board, in its meeting held on September 20, 2011, has fixed October 04, 2011 as the Record date for the purpose of Sub-division of existing equity shares of face value of Rs. 10/- each into 5 Equity Shares of Face Value of Rs. 2/- each

Check back Indian IPO Blog Buzz for the latest bonus and split updates!

Prakash Controwell IPO | In-Depth Analysis from Indian IPO Blog Insights

Prakash Constrowell Limited, a construction company headquartered in Nashik, Maharashtra, has entered the capital markets with an Initial Public Offer (IPO) to raise Rs.60 Crores. The issue would remain open for subscription between September 19, 2011 and September 21, 2011

The 100% Book Building Issue would be in a price band of Rs.130/- to Rs.138/- per equity share for shares having a Face Value of Rs.10/- each. The applications can be made in a bid lot of 50 Equity Shares and in multiples thereof. Intensive Fiscal Services Private Limited, based in Mumbai is the Book Running Lead Manager to the Issue while Bigshare Services Pvt. Ltd. is the Registrar to the issue.

Click here to read analysis on Prakash Controwell IPO from Indian IPO Blog - Insights