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Reliance floats buyback scheme, eyes NYSE listing

Shareholders of the Reliance Industries Limited today approved a unique odd lot buyback scheme initiated by the company for the benefit of small shareholders and investors at its 24th annual general meeting in Bombay on Friday.

The AGM also approved a fresh resolution of extending the validity period of the company's share buyback scheme which was first introduced by the RIL in 1994 through a resolution passed by the shareholders. The scheme was approved with a validity period upto January 15, 1999, and with passing of the resolution today, the buyback scheme validity has been extended up to September 25, 1999.

"We are committed to implementing a share buyback programme consistent with financial prudence, investment options in asset building and aspirations of shareholders as soon as the relevant amendments are made in law," RIL chairman Dhirubhai Ambani said.

Under the odd lot buyback scheme, he said shareholders would receive the market value of shares without any discount for odd lots or deduction for service charges. Reliance will form a trust to implement the scheme.

He said the first quarter results for the current year would be announced in the third week of July. He was non-commital on demands for a special dividend.

Ambani said the company had provided reconciliation of its accounts with both US GAAP as well as international accounting standards and was now exploring the possibilities of securing a listing on the New York Stock Exchange at an appropriate time in future.

RIL's net profit has increased by 25 per cent to Rs 1.65 billion during the year ended March 31, 1998. During fiscal 1997-98, the company's sales grew by 54 per cent to Rs 13.4 billion. The net worth has risen up to Rs 11.98 billion. Total assets have touched Rs 24.38 billion, while market capitalisation increased to Rs 16.5 billion.

The highlight of this year was the completion of the Rs 9 billion Hazira petrochemical complex. This involved commissioning of 17 world-scale plants, all of which are operating at rated capacities, and which increased Reliance's production volumes to 5.2 million tonnes from 1.8 million tonnes.