Gandhi Special Tubes Limited Announces Share Buyback Plan of Up To 8.68 Lakh Shares at INR 900 Per Equity Share

Gandhi Special Tubes Limited Announces Share Buyback Plan of Up To 8.68 Lakh Shares at INR 900 Per Equity Share​

Gandhi Special Tubes Limited has announced a plan for the buyback of up to 8,68,100 fully paid-up equity shares, positioning it as a measure to optimize capital structure and enhance shareholder value. The buyback will be conducted through the tender offer route via stock exchanges, with an aggregate size of up to INR 78,12,90,000/- (Indian Rupees Seventy Eight Crore Twelve Lakhs Ninety Thousand only).

The plan was approved by the Board of Directors on May 25, 2026. Key details of the buyback are as follows:

Financial Rationale and Implementation Details​

The decision to proceed with the buyback is motivated by the company’s objective to return surplus funds to its shareholders, which are noted to be over and above ordinary capital requirements. The management states that this move will help achieve an optimal capital structure and improve financial ratios such as earnings per share (EPS) and return on equity (ROE).

The maximum amount for the buyback is certified by internal accounts to be 24.9996% of the aggregate of the company’s fully paid-up equity share capital and free reserves, based on audited financial statements as of March 31, 2026. The shares proposed for repurchase represent 7.14% of the total paid-up equity share capital.

The buyback will be implemented through a tender offer mechanism, subject to regulations regarding proportionate distribution. A reservation is mandatory for Small Shareholders, mandating that 15% of the number of shares intended for purchase or the equivalent entitlement based on small shareholders' holdings, whichever is higher, must be reserved for them.

Promoter Intent and Process Flow​

The Board confirmed that it has made a thorough inquiry into the company’s affairs and prospects, forming an opinion that the company will not be rendered insolvent within one year from the date of the board meeting (May 25, 2026). The directors’ committee noted that all equity shares are fully paid-up.

The promoters and promoter group have expressed their intention to participate in the buyback, with collective intent submitted through letters dated May 22, 2026. The maximum number of Equity Shares intended to be tendered by the Promoter group is 43,86,106.

The process will involve determining a Record Date, and the company has the authority, subject to regulations, to increase the buyback price and proportionally reduce the number of shares planned for purchase if deemed necessary, provided that there is no change in the overall Buyback Size. The buyback period shall commence from the date of declaration of results of the Shareholders meeting approving the plan and conclude upon payment of consideration to the shareholders.

The Board has also certified that the aggregate amount proposed for the buyback does not exceed 25% of the aggregate of total paid-up capital and free reserves as per the latest audited financial statements of the company as at March 31, 2026.

GANDHITUBE Stock Price Movement​

Gandhi Special Tubes Limited settled higher today, trading at ₹882.85 after gaining 0.38% in post-market trading. The stock saw a solid day, managing to achieve an intraday high of ₹894 against a low of ₹875.9.