Reliance Industries - Stock buyback

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : FINA002
Case Length : 08 Pages
Period : 2004
Pub. Date : 2005
Teaching Note :Not Available
Organization : Reliance Industries
Industry : Petrochemical
Countries : India

To download Reliance Industries - Stock buyback case study (Case Code: FINA002) click on the button below, and select the case from the list of available cases:

Price:

For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra

» Finance Case Studies
» Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Please leave your feedback

<< Previous

Excerpts

Background Note

A Reliance spokesman outlined in detail the objectives of the programme:

• to manage stock price volatility, lower the beta of the stock and attract long-term investors into the company;

• to return money to the shareholders in a tax efficient and investor friendly fashion without sacrificing growth opportunities;

• to improve return on equity; reduce floating stock, enhance long-term price performance and in the long term enable the use of RIL stock as a currency for acquisition;...

Finance | Case Study in Management, Operations, Strategies, Finance, Case Studies

The Options

Speculation also mounted on the possible route RIL could take for the share buyback. Essentially, the RIL board had two options - open market acquisitions of the shares through the stock exchanges or tender offer using a fixed price...

The Road Ahead

On 27th December, the Reliance board after its meeting approved a price not exceeding Rs 570 a share for buying back equity worth up to Rs 2,999 crore (10% of the company's total paid-up equity share capital and free reserves as on 31st March, 2004) from the market, starting 10th January, 2005...

Exhibits

Exhibit 1: The Reliance Group
Exhibit 2: Brief History of Reliance
Exhibit 3: Share price chart
Exhibit 4: Ownership Pattern

Custom Search

Marketing Financial Products
Textbooks Collection

Case Studies in Finance Vol III

Case Study Volumes Collection