REL to consider share buyback

In a move aimed at arresting the slide in its scrip and reassure investors about the growth potential, Anil Ambani group8217;s Reliance Energy Ltd REL on Tuesday said it will consider buyback of shares at a meeting next month.

8220;A meeting of the company8217;s board of directors will be held on March 5 to consider buyback of equity shares of the company,8221; Reliance Energy said in a communique to the Bombay Stock Exchange. The company, however, did not reveal how many shares it proposes to buyback or at what price. When contacted, an ADAG spokesperson declined to reveal the purpose of the buyback.

Shares of Reliance Energy were trading at Rs 1,682, up 3.65 per cent from Monday8217;s close of Rs 1622.70. The scrip, which had closed at Rs 1,963.25 on February 8, has taken a beating since its listing on February 11.

8220;The significance of the buyback is that promoters are sending a message to investors that they are bullish about the business and they don8217;t see the rate of shares going down below that level,8221; Globe Capital Market MD Ashok Aggarwal said.