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