RIL to extinguish its treasury stocks, move to boost EPS: ET Now

NEW DELHI: Mukesh Ambani-led Reliance Industries is embarking on a restructuring of its huge treasury stock holding, valued at over Rs 25,000 crore as per current market prices, reported ET Now.

Sources suggest that RIL is planning to cancel the treasury stocks on it's books in phases. This will boost the Earnings Per Share (EPS) for RIL.

RIL currently holds 29 crore shares or 9 per cent stake in treasury stocks which is worth over Rs 25,000 cr at current market price. However, the company declined any comment on plans to 'cancel' treasury stocks.

Sources suggest, RIL has ruled out any plan to conduct a share buyback as the current norms are not conducive. Securities & Exchange Board of India ( SEBI) has tightened share buyback rules making it mandatory for companies to buy at least 50% of offer size.

RIL currently has a cash of Rs 90,540 crore on its books.

Commenting on the same, Sudip Bandyopadhyay, President of Destimoney Securities told ET Now, "This is a welcome move for RIL shareholders. Arithematically it means more EPS."