RIL mulls buy back; shares surge over 4%

Reliance Industries Limited on Wednesday said it would consider a share buy back on Friday, sending its shares up by over 4 per cent in early trade.

"A meeting of the board of directors of the company will be held on January 20, 2012, to consider and approve a proposal for buy back of equity shares in accordance with all applicable provisions of law," RIL said in a filing to the Bombay Stock Exchange.

Reliance will also announce its third quarter results on the same day.

Following the news, shares of RIL, which carries the maximum weight on the Sensex, jumped 4.68 per cent to touch an early high of Rs 775 on the BSE.

RIL carries 9.78

per cent weight on the Sensex.

For Rediff Realtime News On RIL, Click Here!

Similar upmove was witnessed at the company's counter on the NSE, where the scrip gained 4.44 per cent to Rs 775.

Marketmen said there was a growing feeling that since the stock was severely hit last year the company may consider buy back of shares.

The Mukesh Ambani-led energy major saw its share price plummet 34.26 per cent in the entire 2011.

"Buy back of shares always goes well with the market as it is pro-shareholder in nature.

"The move is a positive indication from the company management," Ashika Stock Brokers Research Head Paras Bothra said.