MUMBAI: In a bid to ward off volatility and speculative activity in its share price, Anil Ambani-led Reliance Energy today said it will buy back shares worth Rs 2,000 crore at a price of up to Rs 1,600 each - a premium of close to 10 per cent over today's closing price. The buy-back price represents a premium of over 30 per cent over Rs 1,225 - its lowest so far during calendar year 2008. Shares of the company today closed at Rs 1459.45, down 3.01 per cent, on the BSE. "The Board of Directors has approved a buy-back of its outstanding equity shares for an aggregate amount of up to approximately Rs 2,000 crore ($500 million), in two phases," the company said in a filing with the Bombay Stock Exchange. The first phase would involve spending Rs 800 crore, representing 10 per cent of the paid-up equity share capital and its free reserves. "A further amount of Rs 1,200 crore will be expended in the second phase, subject to necessary approvals by the shareholders, in terms of the provisions of the Companies Act, 1956 and relevant SEBI Guidelines," Reliance Energy said. The amount represents an additional 15 per cent of the paid-up equity share capital and free reserves of the company. The buy-back would be made from the Reliance Energy's balances of cash and cash equivalents, and is expected to reduce short-term volatility in the company's share price while also deterring any speculative activity in the stock, the company said.