After it’s 3 free shares for every 5 held, yet another move made by Anil Ambani to reduce losses and restore investor confidence by share buy-back.
Reliance Energy Ltd board has approved a buyback of shares worth up to Rs 2,000 crore (20 billion rupees) from the open market at a peak price of Rs 1,600 a share, a 9.6% premium.
The buyback is to “reduce short-term volatility in the company’s share price and deter speculative activity,” the company said in a release.
With effective immediately, Reliance Energy Ltd, part of Reliance-Anil Dhirubhai Ambani Group (ADAG ), will buy back shares worth about Rs 800 crore in the first phase,.
The buyback will be carried out in two phases.
- In the first phase, as much as Rs 800 crore (8 billion rupees) will be spent.
- With the remaining 12 billion rupees being expended in the second phase.