JSPL Board had approved the buyback offer on August 30 and fixed a price of Rs 261 per share for the offer to be conducted through stock exchanges.
"Date of opening of the buyback (offer) - September 16, 2013...," said JM Financial Institutional Securities Pvt Ltd, which is managing the offer on behalf of JSPL in a public notice.
"At the maximum buyback price of Rs 261 per equity share and for the maximum buyback size of Rs 1,000 crore, the indicative maximum number of equity shares that can be bought back would be 38,314,176 equity shares (the maximum buy back shares)," it added.
The company said it has kept Rs 500 crore as minimum buyback size or 50 per cent of the total target. The offer will remain open till March 15 or as determined by JSPL's Board after attaining the minimum buy back target, it added.
The buyback price of Rs 261 per share is 7.21 per cent premium to the closing price of Rs JSPL's shares on the BSE.
JSPL Chief Financial Officer K Rajagopal had said on August 30 that through the buyback offer, it wants to give a signal to its investors that company's fundamentals are strong and it is on track to achieve its growth plans.
Companies use share buyback as a tool to improve their share price valuations, though it reduces the quantum of free float shares in the open market.
As on June, 2013, JSPL promoters had 59.12 per cent stake in the company, while institutional investors had 27.50 per cent stake. Rest were being held by the general public.
The company scrip closed at Rs 233.35 apiece on the BSE, up 2.93 per cent from the previous close.