Reliance Industries rises on heavy volumes

As of December 24, 2012 the company has purchased 46.22 million equity shares at a total consideration of Rs 3,359 crore from public shareholders.

Reliance Industries (RIL) is trading higher by about 2% at Rs 856 on back of heavy volumes on the Bombay Stock Exchange. The stock opened at Rs 841 and has seen a combined around 1.55 million shares changing hands on the counter in early noon deals against an average sub 2.5 million shares that were traded daily in past two weeks on both the exchanges.

The stock of Mukesh Ambani-led integrated oil and gas firm has rallied 4.3% in past four trading sessions on report that natural gas producers like Reliance Industries should be allowed to charge market prices. The Bombay Stock Exchange benchmark index Sensex has gained 2.1% during the same period.

According to PTI report “The 12th Five Year (2012-17) Plan adopted by National Development Council (NDC), headed by the Prime Minister said, "Natural gas prices charged to producers must be determined by market forces.”

Currently, majority of the natural gas produced in the country is priced at $4.2 per million British thermal unit, which is almost a third of the rate at which gas in its liquid form, called liquefied natural gas or LNG, is imported, added report.

Meanwhile, the company informed the stock exchanges that, As of December 24, 2012 it has purchased 46.22 million equity shares at a total consideration of Rs 3,359 crore from public shareholders since it launched a buy-back in February 2012.

RIL has targeted the maximum payout at Rs 10,440 crore for buyback, which would end on January 19, 2013.