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Reliance board meeting to consider buyback of shares

Our Money Bureau

Reliance Industries Limited today announced that it will hold a board meeting on April 12, 2000 to consider buyback of shares.

The company is allowed to deploy 25 per cent of its net worth for share buyback. The net worth is expected at Rs 13,000 crore as on March 31, 2000 and the company can buy back upto Rs 3000 crore. At the current price of Rs 300, the company will be able to extinguish 10 per cent of its equity capital of Rs 10.54 billion.

Reliance will also not be allowed to issue fresh capital for the next two years after the buyback.

The reduction in capital will improve the earnings per share and increase the return on capital employed.

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