|
Search Mudraa.com |
|
| Buy & Sell Used Cars at
CarBHP.com |
Reliance Buyback - a Flashback
| From : Geeta S at 09:11 PM - Jan 21, 2012 ( ) |
Share it on FacebookReliance Industries had last announced a buyback in December 2004 (about seven years ago). The 2004 buyback program offered a premium of 10.87% over the share price just before the buyback announcement.
The size of the buyback program was kept at Rs 2,999 crore, which was about 10 per cent of the share capital plus free reserves as of 31st March 2004.
After the announcement of buyback on 28th December 2004, the company bought shares on nine days only. The total buyback done by the company was to the tune of about Rs 149.62 crore.
So, the actual buyback program was to the tune of just 5% of the total buyback size.
The average buyback price paid by the company worked out to about Rs 521.39 per share.
As the buyback program was through open market mechanism, the actual buyback price can be at a discount to the maximum buyback price (Rs 570).
Investors should remember that there is no mandatory requirement that the company shall buy the entire amount of buyback.
In 2004, the company bought back only 5 per cent of the announced buyback program.
Source: News Item
Inference:
Traders/Investors must be careful and avoid jumping in on monday to buy hoping for 870.
This quarter result is the worst in the past two years.
This buyback might have been aimed at limiting the fall in share price.
Poor perfomance in this quarter was very much expected. Short build-up with a target of 620 levels were caught on wrong foot due to the buyback announcement. In absence of the buyback announcement, the fall could have been severe.
Inspite of shortcovering after the announcement, the upmove was limited, which reveals low investor confidence.
A valid point to be noted is that the promoter's have not increased their stake.
|
Madam,
Thank you.
The aim is solely to protect the promoters more than investors.
Reliance should think of some means to reward the loyal investors who
have been with the company through thick and thin.A gesture to instil
confidence has so far not come and has now become urgent.
Hope to see all cash rich companies come forward to protect investor interests also.
Well said Geeta..
Keep watching until thr is a particular direction and futher announcement on RIL.
| 1 to 3 out of 3 | | First | << Previous | Next >> | Last | |
| (1) |
Login to participate in discussion.
Recently Discussed Posts of Geeta S
General Discussion >> Mukherjee to address parliament on rupee (1)General Discussion >> WAKE-UP CALL TO SPEED UP REFORMS (1)
General Discussion >> Spain clears bond auction hurdle but yields rise (3)
General Discussion >> Repo rate cut seen first time in 3 years: Reuters Poll (1)
General Discussion >> Google Share Split Is a Naked Power Grab (1)
Disclaimer: The messages and ideas posted on this website are user's own views. Mudraa.com does not own any responsiblity for the information provided by the users.Data delayed 15 to 20 minutes unless otherwise indicated.
