Gandhi Special Tubes Limited Announces Proposed Share Buyback and AGM Details

Gandhi Special Tubes Limited Announces Proposed Share Buyback and AGM Details​

Gandhi Special Tubes Limited has announced a proposal for the buyback of its equity shares and scheduled its 41st Annual General Meeting (AGM) for August 2026. The company intends to utilize the tender offer route for the buyback, which is expected to be completed within 12 months from the date of the special resolution approval.

Proposed Share Buyback Details​

The company plans to buy back up to 8,68,100 fully paid-up equity shares of Rs. 5/- each. This represents 7.14% of the total number of equity shares of the company as of March 31, 2026. The maximum price for the buyback is set at Rs. 900/- per equity share, with an aggregate amount not exceeding Rs. 78,12,90,000.

The funds for the buyback will be sourced from the company's free reserves and surplus. The company has confirmed that it will not use borrowed funds to finance the acquisition of its own shares. The proceeds from the sale of the equity shares purchased under this buyback will be transferred to the Capital Redemption Reserve Account.

Specific details regarding the buyback mechanism include:

• Method: Proportionate basis through the tender offer route and stock exchange mechanism.
• Eligibility: All equity shareholders, including promoters and promoter groups, are eligible to participate.
• Small Shareholders Reservation: The company will reserve at least 15% of the shares proposed for buyback or the number of shares held by small shareholders, whichever is higher, for small shareholders. A small shareholder is defined as one holding equity shares with a market value not exceeding Rs. 2,00,000/- on the record date.
• Participation: Participation is voluntary, and eligible shareholders may choose to participate in part or in full.

The buyback price of Rs. 900/- represents a premium over the closing market prices as of May 20, 2026, where shares were priced at Rs. 872.65 on the NSE and Rs. 867.70 on the BSE.

Annual General Meeting and Business Items​

The 41st Annual General Meeting is scheduled to be held on Wednesday, August 12, 2026, at 11:00 a.m. Indian Standard Time (IST). The meeting will be conducted via Video Conferencing or Other Audio-Visual Means (VC/OAVM), with the registered office of the company serving as the deemed venue.

The key agenda items for the meeting include:

Dividend and Financial Information​

The company has proposed a final dividend of Rs. 15/- (300%) for the financial year 2025-2026, subject to approval at the AGM. The record date for determining eligible members is set for August 5, 2026, with payment scheduled on or before September 11, 2026.

The company reported that its audited financial statements as of March 31, 2026, show a surplus in the statement of profit and loss of Rs. 3,06,44,45,566. The total paid-up equity share capital and free reserves amounted to Rs. 3,12,52,05,566 as of that date.

Management and Governance Updates​

The Board of Directors has recommended the appointment of Mr. Manoj Bhupatrai Gandhi as a Non-Executive Non Independent Director effective June 1, 2026. The Board noted his experience in the manufacturing and export of automobile and diesel engine spare parts spanning over four decades.

Additionally, the company seeks ratification for the remuneration of Rs. 85,000/- (plus taxes and reimbursements) paid to Shri. Dakshesh Zaveri as Cost Auditors for the financial year ending March 31, 2027.

GANDHITUBE Stock Price Movement​

As of 11:07 AM, shares of Gandhi Special Tubes Limited are slipping by 0.41% to ₹860.40 in live trading. The stock sees a turnover of 356 shares as the price finds support near its intraday low of ₹864.