Top company official said a final decision on the mode of buyback was yet to be made.

If Raymond buys back shares from the market, it would be the third such company after GE Shipping and Reliance Industries to do so. Reliance has not implemented its buyback proposal, and has only passed an enabling resolution to this effect.

The Raymond board on Monday decided to buy back the company's shares at a maximum price of Rs 160 per equity share. The company will buy back up to a maximum of 25 per cent of the share capital of the company.

The company's decision is subject to the approval from its shareholders. An extra-ordinary general meeting (EGM) of the company is being called on February 15 to obtain the shareholders' approval, the company informed the BSE.

The Raymond stock had been on the rise in the initial days of the new year. It opened on January 1 at Rs 118 and closed on the same day at Rs 118.20. The stock price has rose to reach a 52-week high on January 5. On that day, the stock opened at Rs 121.90 to touch a high of Rs 132.80, before falling to a low of Rs 121 and close at 129.95 when the company's board informed the BSE about the buyback plan.

However, the market did not display the same enthusiasm for the stock on Monday as the company's share dipped and closed at Rs 121.65. Earlier in the day, the Raymond stock rallied to a high of Rs 132.90, after opening at Rs 131. It hit the day's low at Rs 118.95.

The promoters have only 30 per cent stake in the company. The promoters' holding in the company has remained more or less unchanged over the past few years. While the public holding in the company is around 27 per cent, FIs hold 28.02 per cent. Foreign institutional investors and NRIs together hold around 1.29 per cent.

The company has adequate cash reserves after the sale of the cement and steel units. Even after allocating funds for its expansion programmes, the company is left with adequate funds for the buyback, a company official said.