BANGALORE/MUMBAI: PVR has approved the buyback of equity shares and fixed the price cap at Rs 140 per share, a premium of 35 per cent over the company’s closing price today on the BSE.

The multiplex major has also limited the aggregate consideration payable for the buyback at Rs 262.1 million.

The buyback offer, through the open market purchase, would start on 1 July and close on 26 May 2012, 12 months from the date of the resolution passed by the board at its meeting held on 27 May.

The maximum offer size represents 9.99 per cent of PVR’s aggregate paid-up equity share capital as of 31 March, 2011.

The board has fixed a maximum limit of 2.71 million (2,715,000) equity shares that can be bought back, while the minimum limit is of 562,000 shares.

The company said that at the maximum offer price and entire deployment of the maximum offer size, the number of equity shares that can be bought back would be 1.87 million shares, representing 6.90 per cent of the company‘s total paid-up equity share capital.

As of 31 March, the promoters hold 42.64 per cent stake in PVR.

PVR shares closed at Rs 104.25, down 1.18 per cent on BSE today.