Abstract

India's largest private sector company, the Rs. 90,000 crore Reliance Industries Ltd (RIL), is planning a stock buyback in response to the fall in the company's share price. The fall is the result of the highly publicised differences between the promoters - the Ambani brothers. But the younger brother Anil, is opposing this decision taken by the Chairman and elder brother Mukesh Ambani. The decision comes at a time when there are serious questions about the funding of Reliance Infocomm by Reliance Industries. This is a point that Anil Ambani has been repeatedly highlighting in his meetings with the media. Many analysts feel that the feud between the Ambani brothers will take a fairly long time to resolve, so they are not in favour of the buyback. The case discusses the viability and the possible modus operandi of the buyback in the face of the ongoing acrimony between the promoters.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Reliance Industries Ltd, RIL, Dhirubhai Ambani, Mukesh Ambani, Anil Ambani, Ambani brothers, Family business, Stock buyback, RIL shareholders, RIL board, Share buyback, Reliance Infocomm