BUSINESS

RIL buyback price fabulous, but. . .

Source:PTI
December 27, 2004 16:02 IST
Stock brokers on Monday said the share buyback price approved by the Reliance Industries Ltd board at Rs 570 per share "is good news" but felt that the ongoing tussle between Ambani brothers will impact the corporate governance image and buyback scheme itself.

"The buyback price of RIL is fabulous news for investors. However, the infighting between Ambani brothers will affect the buyback process. The investors will be prompted to get out of RIL stock rally as the tussle among the brothers has become extreme", a stock broker told PTI in Mumbai.

The Reliance 'ownership issue'

The infighting and RIL vice chairman and managing director Anil Ambani's statement prior to board meeting are definitely going to impact country's corporate governance image, S Banerjee, Equity Sales Analyst, Inventure Growth & Securities Ltd said.

"Once the financial institutional investors loose the trust in the country, they will move out to other markets with better corporate governance background. The sound liquidity of the country is due to FIIs' existence. FIIs are holding a handsome chunk of RIL stock", Banerjee said.
Source: PTI
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