Fairchem Organics Ltd has approved a share buyback of up to 425,000 equity shares for an aggregate amount not exceeding ₹340 million. The buyback will be executed via the open market route, and promoters have confirmed they will not participate, signaling confidence in the company’s long-term prospects.
Fairchem Organics Ltd, a specialty chemicals manufacturer, has announced a board-approved share buyback plan aimed at enhancing shareholder value. The company will repurchase up to 425,000 fully paid-up equity shares, representing approximately 3.6% of its total paid-up equity capital, for a maximum outlay of ₹340 million.
The buyback will be conducted through the open market mechanism via stock exchanges. Notably, the company’s promoters and promoter group have voluntarily decided not to participate in the buyback, allowing greater benefit to public shareholders and reinforcing their commitment to long-term value creation.
Key highlights from the announcement include
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The buyback size is capped at ₹340 million, with a maximum of 425,000 equity shares to be repurchased.
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The buyback price will be determined based on prevailing market conditions during the open market transactions.
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Promoters and promoter group entities will not tender their shares in the buyback.
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The initiative is aimed at optimizing capital structure and improving return ratios.
The buyback is expected to be completed within six months from the date of board approval.
Sources: Business Standard, Fairchem Organics Investor Relations, The Economic Times.