Reliance Infrastructure volatile on buyback delay

Shares of ADAG company Reliance Infrastructure turned volatile amid concerns over the delay in the opening of the company's buyback offer. The offer was scheduled to open for subscription on April 5. The company's stock fluctuated between the day's high of Rs 704.7 and low of Rs 685, before eventually ending the day with a marginal gain of 1.2% at Rs 693.7 on the BSE.

R-Infra , with earnings from electricity distribution and infrastructure development, has announced a Rs 1,000-crore share buyback offer to buy a 8.3% equity from public shareholders. Under the offer, the company will buy back up to 1.38 crore shares for a maximum price of Rs 725 a piece at a premium of over 47% to the 52-week low price of Rs 493 a share. Analysts felt the delay could be due to procedural reasons.

An R-Infra spokesperson declined to comment on the issue. The buyback is expected to support the share price which has been highly volatile in recent weeks. The stock, in fact, is currently quoting at a sharp discount to its 52-week high of Rs 1,225 recorded in June last year.

(Contributed by Pradeep Pandey & Reena Zachariah)