Reliance Industries (RIL) will open its share buyback from February 1, and close the offer on January 19 next year, it said in a newspaper advertisement on Tuesday.
RIL, India's biggest company by market value, said late last week it will spend up to $2.1 billion to buy back shares at a maximum price of Rs 870 each, or about 10% premium over its current share price, as it looks to prop up its underperforming shares.
It will buy back up to 120 million shares, or 3.7% of outstanding equity. Its controlling shareholders, who own 44.7% of the equity, will not participate in the offer.
Shares fell 2.7% on Monday after the energy major posted its first drop in quarterly profit in more than two years. By 0953 hours on Tuesday, the stock was up 1.8% at Rs 785.45.
RIL's market value tumbled 35% in 2011, mainly because of worries that falling output from its offshore gas fields would hurt its long-term growth.
The stock underperformed the main Mumbai market, which fell nearly 25% in the same period.
The share buy back is expected to increase shareholder value by reducing the number of shares and increasing earnings per share, RIL said in the advertisement.
This is the company's first share buy back since 2005 and the biggest ever in India.
Citigroup and Bank of America-Merrill Lynch are the managers for the buyback offer.