Fresh Program for buy-back of shares

13 Feb 2009 09:11



MEDIA RELEASE

Reliance Infrastructure announces fresh program for

buy-back of shares of Rs 700 crore (US $ 143 million)

Buy-back up to Rs 700 per share - a premium of about 27% to current Market Price 

Buy-back through transparent open market purchases

Completed first phase of buy-back of 87.6 lakh shares 

of Rs 796 crore (US $ 162 million)

 - Largest ever by any Indian corporate

Mumbai, February 13, 2009 : Reliance Infrastructure has announced a program for buy-back of equity shares for an aggregate amount of up to Rs 700 crore (US $ 143 million), as approved by the shareholders of the Company. The buy-back program, subject to compliance with the applicable regulations of SEBI, will remain open up to mid April 2009. 

The buy-back will be made up to a maximum price of Rs 700 per share, a premium of about 27% to current market price.

The Company will buy-back shares on the Bombay Stock Exchange Limited (BSE) and National Stock Exchange Limited (NSE), through a transparent mechanism of open market purchases, from time to time.

The shares purchased under the buy-back program will be cancelled, as required under SEBI guidelines, leading to a reduction in the Company's outstanding equity capital.

The proposed buy-back is expected to lead to the following benefits :

Reduction in the outstanding number of equity shares, and consequently, an increase in Earnings Per Share (EPS)

Improvement in Return on Net Worth and other financial ratios

Positive impact on the Company's stock price, contributing to maximization of overall shareholder value

The Company recently closed the first phase of buy-back program in which the Company bought-back 87.60 lakh equity shares of Rs 796 crore, as approved by the Board of the Company. This is the largest ever buy-back by any corporate in the country till date.

The Company's diluted equity capital is Rs 227.77 crore and its market capitalization is Rs 12,500 crore.