The Hindu Business Line : Reliance Energy to buy back shares at Rs 525

RELIANCE Energy Ltd's board of directors on Wednesday approved a plan to spend a maximum of Rs 350 crore to buy back equity shares of the company from the public at a maximum price of Rs 525 per share. Reliance Energy on Wednesday closed at Rs 540.05 on the Bombay Stock Exchange.

"Normally, a buy back is conducted when a company has huge cash reserves. But, in our case, the REL board has allowed use of up to 10 per cent of the company's net worth amounting to Rs 350 crore," Mr Anil Ambani, Chairman and Managing Director, told shareholders at REL's annual general meeting on Wednesday.

Mr Ambani said REL would look at setting up hydro-based power stations in Himachal and Uttaranchal. It will supply gas to its proposed 3,740 MW power station at Dadri in Uttar Pradesh, by laying onshore pipelines connected to Gail India's 1,800-km Hazira-Bijapur-Jagdishpur trunk pipeline.

REL has no plans to increase capacity of its 500 MW Dahanu power plant, instead it will pay attention to gas-based plants, Mr Ambani said. He said the country should look at pithead coal power plants as coal was available in abundance. The company's first priority will be to complete modernisation of its own power installations in Mumbai, Delhi and Orissa, he said.