Buyback move arrests fall in Reliance share prices

Though the Sensex fell 38 points on Wednesday, Reliance Industries (RIL) stock swam against the tide and closed with a significant gain. The...

Though the Sensex fell 38 points on Wednesday, Reliance Industries (RIL) stock swam against the tide and closed with a significant gain. The reason: the move by the company to buy back its own shares from investors.

The RIL stock has gained over 3 per cent from last Friday’s closing level of Rs 480.15 to Rs 494.65 by Wednesday. The stock gained 1.88 per cent during the day despite selling pressure in other stocks. After touching a new high of 6,480.20 in the early trades, the 30-share BSE Sensitive index (Sensex) lost ground on profit-booking to end at 6,413.66, down 37.64 points.

India’s largest corporate had announced two mega buybacks in the last four years. The first share buyback was in 2002 which was renewed in 2001. In both the plans, the company had fixed the share buyback price at Rs 303.

“In fact, RIL’s share price was below the fixed price of Rs 303 for more than one-fifth of the duration of the buyback plan. In spite of this, the company did not purchase a single share,” said a BSE dealer. The company has now launched the buyback at a higher price — around Rs 487-500 — expected to keep its share price from falling due to the row between Anil and Mukesh Ambani.

Trump and Netanyahu at the White House: 20 point peace plan for Gaza

Why Donald Trump’s new Gaza ‘peace plan’ differs from earlier attempts, challenges ahead

Explained59 min ago

Trump's new plan for peace in Gaza allows Palestinians to stay and rebuild, offers a path to statehood, and is backed by Arab and Muslim leaders. It aims for an immediate end to the war and includes a "board of peace" led by Trump, but its success depends on cooperation from all parties involved.

View all shorts

Live Blog

PHOTOS