Reliance Industries (RIL) is trading higher by 2.2% at Rs 808 ahead of its share buyback offer, which will start from February 1 and close on January 19, 2013.

The stock has outperforming the markets by gaining 9.2% since the buyback announcement on January 18, compared with 4.4% rise in the Bombay Stock Exchange (BSE) benchmark index Sensex.

India’s most valued company would buy back up to 120 million equity shares worth Rs 10,440 crore from the open market at a maximum price of Rs 870 a piece in its first share buyback since 2005.

Citigroup global Markets and DSP Merrill Lynch has been appointed as the managers to the buyback offer.

"The buyback will also provide a tax efficient mechanism to return money to shareholders and create long term value for continuing shareholders," RIL said.

A combined 160,000 shares have changed hands on the counter so far on the NSE and BSE.