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Reliance industries Ltd Share Buy-Back Plan Fails to Sell

  • Nobody was in a hurry to buy Reliance Industries Ltd (RIL) shares at Rs 780 on Monday, even as the firm has announced a buy-back plan of 12 crore of its shares at a maximum price of Rs 870 in open market late on Friday.The negative sentiment arose basically from its failure to meet market expectations in terms of its latest quarterly results, when it reported a 13.6 per cent fall in net profit. Besides, the buy-back offer is also not attractive, punters said.

  • "The modus operandi the firm has chosen for buyback is Open Market Purchase. Hence, it will buy the shares from open market, at market prices. Meaning, the maximum buy-back price of Rs 870 per share is not necessarily the 'actual buy-back price'," said Jagannadham Thunuguntla, head of research of SMC Global Securities.

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