Reliance Industries Ltd.

Shares of Reliance Industries climbed a percent to Rs 823.50 ahead of the opening of its Rs 10,440 crore buyback -- the largest ever in the country's capital market history

The buyback has opened today  i.e. 01/02/2012 and will close on 19/01/2013. Citigroup Global Markets and DSP Merrill Lynch are the managers for the offer.

Highlights of the offer

Reliance Industries Share Buy Back Offer

• Buyback will be executed through the open market.
• Upper price is set at Rs.870.
• The maximum amount is set at Rs.10,440 Crores.
• Shreholders CANNOT directly sell the shares to RIL for Rs.870.
• There is NO GUARANTEE that the price will rise to Rs.870 in the near future.

A buyback involves a company purchasing its own shares from the public - either through a tender offer or buying in the open market - and extinguishing them. The exercise enhances overall shareholders value as it results in a reduction in the number of outstanding equity shares, and a consequent increase in the earnings per share and improvement in financial ratios.

Thanks and Regards,
Mideast Team