Mumbai, Mar 5 (UNI) Reliance Energy Ltd (REL) has approved a buy-back of its outstanding equity shares for an aggregate amount of up to approximately Rs 2,000 crore (USD 500 million) in two phases.
REL will buy-back shares up to a maximum price of Rs 1,600, representing a premium of over 30 per cent to the low of Rs 1,225 recorded during the calendar year 2008, and a premium of approximately 10 per cent to the closing share price of today.
The Board of Reliance Energy which met today, decided that in the first phase an amount of Rs 800 crore (USD 200 million) will be expended. This amount represents 10 per cent of the paid-up equity share capital of the Company, and its free reserves.
A further amount of Rs 1,200 crore (USD 300 million), amounting to 15 per cent of the paid up equity share capital of the company and its free reserves, will be expended in the second phase, subject to necessary approvals by the shareholders, in terms of the provisions of the Companies Act, 1956 and relevant SEBI Guidelines.
REL will buy-back shares on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), through a transparent mechanism of open market purchases, from time to time, the Company said in a release here.
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