The board of directors of Merck has approved the buy-back of shares worth up to Rs176 crore. The company will buy back fully paid equity shares of Rs10 face value each at Rs435 a share, in two tranches, the company said in a release.
In the first tranche, the company will purchase its fully paid equity shares of the face value of Rs 10 up to an amount of Rs45 crore (or around 10 per cent of the total paid up capital and free reserves as per the audited balance sheet for the year ended 31 December 2008).
In the second tranche, the company, subject to shareholders' approval, will buy shares worth Rs113 crore (or up to 25 per cent of its total paid-up equity capital and free reserves).
The company said it will buy these shares on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), through open market purchases.
Shares of the company were trading at Rs395.45, up almost 5 per cent from its previous close, on the Bombay Stock Exchange.