Reliance Industries Ltd has called a meeting of its board
of directors next Monday to discuss buying back equity
shares from investors who want to exit.
company yesterday informed stock exchanges that a share
buyback would be among the topics the board would discuss
on December 27.
meeting comes within days of the vice-chairman and managing
director, Anil Ambani, calling for a meeting to discuss
issues of importance, including the resignation of one
of the senior most directors, M.L. Bhakta.
to a company source, the buyback proposal is a reaction
to the fall in RIL share price ever since differences
between the Ambani brothers became public.
company strongly believes that its shares are significantly
undervalued. A share buyback is a strong signal of confidence
in the share price and company performance and seems,
at present, to be the best option to counter speculative
activities that could be detrimental to the interests
of RIL shareholders," the source said.
RIL stock has fallen 12 per cent from Rs544 on November
17, the day Mukesh Ambani said in a television interview
that all may be not well within the family. The stock
was quoting at Rs 480.65 at close of trading on Monday.
had last kept a share buyback programme open from April
2000 to June 2002, offering Rs303 per share. The Rs 1,100-crore
programme did not get a single share then.
RIL will finalise its plan only next Monday, the big question
being asked is what premium the company would offer.