Reliance Industries Ltd has informed BSE that the company will declare its Third Quarter (Q3) Results for FY 2011 – 2012 on 20th January 2012.

The Board of Directors of the Company will also consider and approve the proposal to buy back the company’s equity shares. Earlier last week the company had announced that the company will buyback shares and experts believe that this buyback is expected to be the biggest in Indian history worth over Rs. 12,000 crores.

As of now promoters of the company hold 44.71 percent shares, FII’s hold 17.03 % shares, Domestic Institutions hold 11.35 % shares and others hold remaining 26.91 % shares. Recently, Government of Singapore bought 1.1% stake in the company.

A analyst at a leading brokerage house says that “The buyback will utilise the large pile of cash and cash equivalents (approximately Rs 70,000 crore) lying on Reliance’s balance sheet and is expected to be value accretive to the shareholder.”

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Experts tracking Reliance say that there are three aspects to the move. One, the promoters want to send the message that they are optimistic about the company’s business prospects. Two, the buyback is being used as a tool to prop up the share price of the company; and, three, the buyback also utilise the idle cash on its books.

Experts believe that the Q3 Results of Reliance will be disappointing and the company will announce its first decline in profits in the last couple of years.

“Though RIL is a long term buy-and-hold scrip, there is no doubt that its businesses in the short term are under pressure,” said a Head of Research of an Indian brokerage.