Reliance Infrastructure Limited (RInfra) is an ADAG Group company. The company plans to buy-back its outstanding equity shares worth Rs 1000 crore. The buy-back is going to start from 5th April 2011. Buy-back price company sets is Rs 725 per share which is almost significant 10% premium to the current market price of Rs 687 per share.
At present Reliance Infrastructure share is trading at around 24% discount on the basis of its Book value of Rs 860 per share calculated on 31st December 2011.
The Company has done three buy-backs till date for an aggregate amount of Rs. 923 crore and the current buy-back offer reflects more than 100% of the aggregate amount invested in three previous buy-back offers.
RInfra will buy-back shares on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), through open market purchases, from time to time.
Buy-back is a process by which companies try to reduce their outstanding number of equity shares, and consequently, an increase in earnings per share (EPS). The other benefit of buy-back is improvement in Return on Net Worth.
Share’s Data :-
BSE Code : 500390
Mkt. Cap : Rs 18,327.60 Crores
Bank of India share’s CMP is Rs 687.45 on 5th April 2011.
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