Mumbai: Reliance Energy Ltd said on Feb 26 that the company''s board will consider buyback of shares at a meeting to be held on March 5. The company was having cash reserves of over Rs 10,000 crore and the stock was undervalued and, therefore, it was decided to take the buyback route. It could infuse between Rs 1,000 crore and Rs 2,500 crore. The company prefers for a buyback, but in December 2007, the company had chose for Rs 8,000-crore equity capital infusion through a preferential offer. Reliance Energy Ltd, in a December 3 notice to the BSE, had said that company was preferring for capital infusion so as to take part in large-scale infrastructure projects, which will be soon open for bidding. The new equity capital will considerably enhance Reliance Energy''s net worth, and further augment its borrowing capabilities, to enable greater participation in these mega growth opportunities in high growth areas, thereby, generating superior returns for over 1.5 million shareholders. The promoters currently hold 34.68 per cent stake in the company, 63.99 per cent is held by the public shareholders, and overseas investors against depository receipts hold the rest of the stake.
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