Max India on Tuesday said it would come out with a capital reduction programme under which the company would buy back equity shares worth up to Rs 92 crore from the public.

The company plans to offer its shareholders the option of taking Rs 85 per share for up to 20 per cent of their equity in lieu of cancelling the shares. The shares of Max India rallied more than 8 per cent to close at Rs 67.05 on the BSE after the announcement. The buyback price translates to a 37 per cent premium to the closing price of the Max India scrip on Monday.

Max India, which got relisted on the bourses on August 28, said it had Rs 400 crore in its kitty primarily from the divestment of its erstwhile subsidiary Max Bupa.

Max wants to use up to Rs 92 crore of the sum for capital reduction, while the balance of more than Rs 300 crore will be apportioned for growth and other operational expenses.

“The board has approved the capital reduction exercise. The proposal will need to be approved by a special resolution of public shareholders. It will additionally need regulatory approvals including from stock market regulator and NCLT, Mumbai. The approval process is expected to take about 6-8 months,” Max India said.