Reliance Energy

Reliance Energy will consider a share buyback on Today for the same reason seen in the past, to reduce the volatility of the stock and to create a Negetive sentiment towards the stock. This will probably give it a ceiling, which is why Reliance is offering the buyback. Normally, the share calculation would be either 25% of the net worth or 10% of the paid up capital, whichever is lesser. At the end of FY08, Reliance Energy is likely to have Rs 11,000 crore as net worth, 25% of that works out to Rs 2,750 crore. Working out various permutations and combinations on various price points to see whether the paid up capital will be raising more than 10% - take the price of Rs 1,400; at this price point it will mean for the Rs 2,350 crore, they would have ear mark only 7.3% of the paid up capital

Msg By Mr Ravi Singh