Reliance Industries buyback: Beyond face value
The question arises whether the company was able to meet its desired target. From the time the company announced its buy-back on January 20 last year, its shares have risen by 8.5 per cent yet it has still underperformed the broader market. The Sensex has risen by 18.4 per cent in the same period. Interest in the buy back would have been greater had the company spent the entire amount it had assigned for the programme, which means offering a higher price for the shares. The shareholders would have earned larger value and that would have created more buzz around the counter. For instance the company had cash and cash equivalents amounting to Rs 67,904 crore as on March 2012 and it could have done more through its buyback to reward its shareholders at a time when the scrip was lagging the market performance.
RIL bought 1.27 crore shares when the weighted average price (WAP) of shares stood
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