Reliance Energy receives overwhelming support for its buyback scheme

Mumbai, Apr 17 (UNI) Reliance Energy Limited today announced that its shareholders have, by an overwhelming majority, approved the Company's proposal to buyback shares of up to 25 per cent of paid up capital and free reserves, aggregating up to Rs 2,000 crore.

The Company, while announcing the results of its postal ballot, said in a release here that the shareholders also approved waiver of Company's entitlement to receive bonus shares proposed by Reliance Power and to accept gift of 2.57 per cent shares of Reliance Power from its Chairman Anil D Ambani The move to change the name of Reliance Energy to Reliance Infrastructure Limited has also been approved.

Earlier, in an unprecedented step, to protect the Company from suffering any dilution of its holding in Reliance Power consequent upon the Company waiving its right to Bonus Shares, AAA Project Ventures, an entity fully controlled by Mr Ambani and also Promoter of the Group, had undertaken voluntarily without any obligations to do so and without any specific consideration to contribute as and by way of gift, 2.57 per cent of its Post Bonus Issue shareholding comprising 6,15,00,000 shares in Reliance Power to the Company.

The shareholders of Reliance Energy have also overwhelmingly approved the proposal to accept the aforesaid gift of shares by AAA Project Ventures.

Meanwhile, with the approval of the Board of the Company, Reliance Energy has already commenced buyback of shares up to an amount not exceeding 10 per cent of the paid up equity share capital and free reserves (including Securities Premium) of the Company, aggregating Rs 800.06 crore. Pursuant to the approval, the Company has so far bought back 20,38,551 equity shares aggregating Rs 250.75 crore.

UNI VK NM SKB1814