Companies

RInfra fixes buyback price at Rs 725/share

Our Bureau Mumbai | Updated on February 14, 2011

Reliance Infrastructure plans to buyback shares at Rs 725 a scrip totalling up to Rs 1,000 crore over a period of one year. The buyback price is at 16 per cent premium over the closing price of Rs 627 on Monday.

The company will use reserves and internal accruals to fund the share buyback programme.

Mr Lalit Jalan, CEO, RInfra, said the company's stocks are currently trading at a discount of 32 per cent to the consolidated book value, reflecting a significant and unique value opportunity. It will lead to reduction in the outstanding number of equity shares and, consequently, an increase in earnings per share (EPS).

Anil Dhirubhai Ambani Group had recently complained to market regulator SEBI to investigate a conspiracy to bring down it stock prices.

Profit up 10% in Q3

Reliance Infra has reported 10 per cent increase in net profit at Rs 405 crore in the December quarter, against Rs 368 crore logged in same period last year. Operating income at Rs 3,744 crore (Rs 3,287 crore) was up 14 per cent over the same period last year.

The company's sale of power on a standalone basis was a tad lower at 2,192 million units (2,457 million units) during the quarter under review leading to a 11 per cent fall in revenue at Rs 1,424 crore (Rs 1,600 crore).

The Mumbai distribution business achieved aggregate sales of 1,801 million units (2,080 million units) and aggregate revenue of Rs 1,258 crore (Rs 1,450 crore). The Delhi distribution business recorded sales of 3,099 million units (2,921 million units), an increase of 6 per cent. Net aggregate revenue was at Rs 1,391 crore (Rs 1,329 crore), an increase of 4.6 per cent.

Published on February 14, 2011

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