Reliance Energy plunged 8.25% to Rs 1341.50 at 10:37 IST on BSE despite the company’s board approving buy back of shares worth up to Rs 2,000 crore at a maximum price of Rs 1600 per share.
On BSE, 3.38 lakh shares of the scrip were traded. The stock had an average daily volume of 10.97 lakh shares on BSE in past one quarter.
The scrip had touched a high of Rs 1488.80 and a low of Rs 1331.40 so far during the day. The stock had hit a 52-week high of Rs 2631.70 on
The scrip had underperformed the market over the past one month till
At the current price of Rs 1341.50, the scrip trades at a PE multiple of 26.30, based on Q3 December 2007 annualised EPS of Rs 51.
Reliance Energy (REL) said in a statement that the buyback is to reduce short-term volatility in the company’s share price and deter speculative activity in the stock. The buyback price of up to Rs 1,600 is at a 9.63% premium over Wednesday’s,
The Reliance Energy (REL) board of directors, which met after market hours on
With Rs 2000 crore allocated for buyback, the company could purchase around 1.25 crore shares from the open market if the buyback is done at maximum price of Rs 1600 per share. This will raise promoter’s stake by 1.5% to 37% of the reduced equity base as shares bought back are to be extinguished.
The net profit of Reliance Energy rose 50% to Rs 301.60 crore on 1.5% decline in sales to Rs 1505.49 crore in Q3 December 2007 over Q3 December 2006.
Reliance Energy is engaged in generating, transmitting and distributing electricity. It also provides electrical contracting, engineering, procurement and construction contracts and computer services.
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