Abbott India, a Mumbai based MNC, has announced that the company is buy backing 8,07,360 fully paid equity shares of the face value of Rs 10 each at a price of Rs 650 per share, for an aggregate amount of Rs 52.48 crore. The buyback size represents 25 per cent of the aggregate of the company's paid-up equity capital.

The buyback offer commenced from October 6, 2006 and will be close on November 21, 2006.

Considering accumulated free reserves as well as favourable liquidity reflected during the year ended November k2005, the company considered buyback for improving the return on equity and increasing shareholders value. The aggregate paid up share capital and free reserves, reached at Rs 210 crore. At present the promoters and directors are holding 61.7 per cent of the equity capital and their holding after the buy back will increased to 65.14 per cent.

The company's issued, subscribed and paid-up share capital stood at Rs 14.47 crore as at the end of November 2005. DSP Merrill Lynch Fund Managers Ltd is Manager to the Buyback offer.