Reliance Energy weighs buyback

Reliance Energy Ltd is planning to buyback part of its equity shares from the market. The board will consider a proposal to buy back shares at its meeting scheduled on June 9, a Reliance release said.

Reliance Power Ventures, Reliance Industries and Reliance Industrial Investments and Holdings, along with persons acting in concert (Reliance Capital and Reliance Capital Trustee Company) had acquired 91 lakh shares, representing 4.99 per cent of the voting rights of Reliance Energy on April 3.

After the acquisition, the promoter's stake went up to 9.3 crore equity shares, representing 50.70 per cent of the company's voting rights.

As on March 31, 2004, the promoter group, including Reliance Power Ventures, held 48.1 per cent stake in the power company, according to the shareholding data available with Bombay Stock Exchange.

Institutional holding, including stakes held by foreign institutional investors (FIIs), was 36.42 per cent, while the public held 6.62 per cent shares in the company.

Earlier in April, the company took a decision to allot 9.99 lakh underlying equity shares for the issuance of 3.33 lakh global depository receipts (GDRs), following the conversion of 0.50 per cent foreign currency convertible bonds, issued by the company on October 25, 2002.

Reliance Energy had issued foreign currency convertible bonds, aggregating $178 million, to international investors. These bonds were convertible at any time after April 23 this year at Rs 1,006.92 a share.

It has also recently announced that it would be raising securities from the international markets. The terms of raising the loans included that the issue of such securities should not result in increase of issued and subscribed equity share capital of the company by more than one crore equity shares of the face value of Rs 10 each.