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