Anil Ambani group firm Reliance Energy`s buy back offer worth Rs 8 billion has given its stock a boost. The company`s shares soared about 7% today at the BSE.
The scrip was last quoting at Rs 1,259, up Rs 82.10, or 6.98% on volumes of over 1.17 million at 2.15 p.m.
Reliance Energy, now Reliance Infrastructure, since the commencement of the buy-back offer on Mar. 25, 2008, has bought over 2 million shares, aggregating Rs 2,507.5 million.
The board of directors of Reliance Energy (REL) has approved Rs 20 billion share buy-back in two phases through open market transactions at a maximum price of Rs 1,600 a share.
The company, in the first phase will spend Rs 8 billion, amounting to 10% of the company`s equity and free reserves. The remaining Rs 12 billion shall be expended in the second phase, subject to necessary approvals by the shareholders.
REL`s fully diluted equity capital is Rs 2,795.3 million, and its market capitalization is about Rs 420 billion (USD 10.5 billion).