RIL not to buy shares from promoters
By Our Corporate Bureau | 30 Dec 2004
New Delhi: Reliance Industries Ltd will not buy shares from promoters or through negotiated deals under the buyback arrangement. RIL board has already approved buyback of shares at Rs570 a share and made a provision of Rs2,999 crore for the buyback.
"The RIL board confirmed that the company shall not purchase shares under the buyback from the promoters or from any person in control through negotiated deals or private arrangement and that funds borrowed from banks or FIs will not be used for the buyback," RIL said in a statement to the Bombay Stock Exchange.
The buyback would be made out of the free reserves and / or the securities premium account of the company by open market purchases through stock exchanges as per SEBI regulations, RIL said.
RIL's buyback arrangement is part of strategy to boost the scrip price with higher earnings per share as the number of outstanding equity shares will get reduced.
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