New Delhi, Apr 24 (PTI) Pharma company Akzo Nobel India today said it proposes to buyback up to 11.20 lakh equity shares of the company (representing 2.4 per cent of the total number of equity shares) from the equity shareholders for Rs 235.20 crore.

The buyback is proposed on a proportionate basis through the 'tender offer' route as prescribed under the Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 at a price of Rs 2,100 per equity share, aggregating to Rs 235.2 crore, the company said in a regulatory filing.

The board, at its meeting held on April 6, had approved buyback of fully paid-up equity shares not exceeding 11.20 lakh subject to shareholders and regulatory approval.

Akzo Nobel said the purpose of buyback is to enhance the overall shareholder value, optimise returns to shareholders and optimse the capital structure of the company through return of surplus cash.

"The buyback will not in any manner impair the ability of the company to pursue growth opportunities or meet its cash requirements for business operations. The objective is to return surplus cash to the members holding equity shares of the company," it said in a regulatory filing.

The pharma company said the buyback is proposed to be completed within 12 months of the date of special resolution approving the proposed buyback.

Stock of the company closed at Rs 1,934.55 apiece on BSE, up 0.79 per cent from its previous close.

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