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Reliance Infrastructure (RInfra) said, the company will commence buyback of its equity shares from April 5.
RInfra had earlier announced its plan to buy-back its outstanding equity shares for an aggregate amount of up to Rs 1,000 crore.
It will offer a maximum price of Rs 725 a equity share, representing a premium of over 47 per cent to the 52-week low of Rs 493 equity share.
On Monday, the company scrip closed at Rs 662.10, up 1.76 per cent over previous close.
RInfra said that on consolidated basis, its book value was Rs 860 a share as on December 31, 2010. RInfra had gone in for three buybacks totalling Rs 923 crore. The current buyback of Rs 1,000 crore is a little over 100 per cent of the total of the earlier offers put together. The buyback would be through open market purchases on the BSE and NSE and would be made from the investments made by the company in liquid and marketable securities.
RInfra said, the intention of the offer was to reduce short-term volatility in share price, deter speculation and send a strong signal to the capital market on the perceived under-valuation of the scrip.
In line with SEBI guidelines, the shares purchased under the buyback programme will be extinguished, leading to a reduction in the company's outstanding equity capital.
The company said, as at February 14 its equity capital was Rs 267.42 crore and market capitalisation over Rs 17,500 crore.
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