Gandhi Special Tubes buyback: Aug 21 record date, ₹900

Record date set for tender-offer buyback

Gandhi Special Tubes Limited has fixed Friday, August 21, 2026 as the record date for its proposed share buyback. The record date will determine which shareholders are eligible to participate in the offer. The company said entitlement will be determined for shareholders whose names appear on the company’s books or in depository records by the close of business on that date. The record-date announcement follows shareholder approval for the buyback at the company’s recent annual general meeting. The buyback is planned through the tender offer route. The company has also indicated that participation is voluntary, and eligible shareholders can tender shares in part or in full.

Shareholder approval at the 41st AGM

The buyback resolution was approved at the 41st Annual General Meeting (AGM) held on August 12, 2026. The AGM was scheduled via video conferencing and was set to begin at 11:00 a.m. IST, as per the agenda details shared. Shareholders approved the buyback as a special resolution, which requires a higher threshold of votes compared with ordinary items. The company reported 99.99% shareholder support for the buyback resolution. At the same AGM, shareholders also adopted the audited financial statements for the year ended March 31, 2026 and approved a final dividend. The company also noted that statutory and secretarial audit reports carried no adverse remarks.

Buyback size, price, and overall cap

The Board of Directors had approved a buyback of up to 8,68,100 fully paid-up equity shares. Each equity share has a face value of ₹5. The repurchase price is set at ₹900 per share, payable in cash. The total buyback amount is capped at ₹78.12 crore, excluding transaction costs such as brokerage, taxes, and filing fees. Some disclosures describe the aggregate amount as ₹78.13 crore, reflecting rounding, but the buyback cap is communicated as ₹78.12 crore in the company’s buyback details. The buyback size has also been described as 7.14% of the total number of equity shares as of March 31, 2026.

What the record date means for shareholders

Only shareholders holding equity shares as of the close of business on August 21, 2026 will be eligible to participate in the tender offer. Shareholders recorded with depositories on that date are also covered under the eligibility criteria stated by the company. This is a standard process for corporate actions such as dividends and buybacks. The record date does not itself confirm acceptance of shares tendered, since acceptance depends on entitlement and oversubscription levels. But it fixes the investor base that can apply for the buyback. Investors typically track the record date closely because it is central to entitlement calculations and small shareholder classification.

Tender offer route and participation mechanics

The company plans to carry out the buyback on a proportionate basis through the tender offer route and the stock exchange mechanism. The company’s stated eligibility covers all equity shareholders, including promoters and promoter group entities. Participation is voluntary, and shareholders may choose to tender all or part of their holdings. The company will reserve at least 15% of the shares proposed to be bought back, or the number of shares held by small shareholders, whichever is higher, for small shareholders. A small shareholder has been defined as one holding shares with a market value not exceeding ₹2,00,000 on the record date. These design choices are meant to align the buyback structure with regulatory requirements for tender offers.

Funding, solvency, and accounting treatment

The company has stated that the buyback will be funded from free reserves and surplus. It also confirmed that it will not use borrowed funds to finance the acquisition of its own shares. Post buyback, the shares bought back are expected to be extinguished after completion, as referenced in the buyback description. The proceeds from the sale of equity shares purchased under the buyback will be transferred to the Capital Redemption Reserve Account. The company’s auditors have confirmed solvency and compliance with regulatory requirements post-buyback, as referenced in the material shared. This forms part of the routine checks required for executing a buyback.

Dividend also approved at AGM

Alongside the buyback proposal, the Board recommended a final dividend of ₹15 per share. The dividend was described as a 300% dividend, consistent with the company’s face value of ₹5 per share. Shareholders at the AGM adopted the audited financial statements for the fiscal year ended March 31, 2026 and approved the final dividend. With both dividend and buyback on the agenda, investors are likely to track the payout timeline and the tender offer process. The company has positioned the buyback and dividend as part of its capital return actions for shareholders.

Premium to cited market prices (as disclosed)

The buyback price of ₹900 per share has been described as a premium to the closing market prices as of May 20, 2026. The material cited closing prices of ₹872.65 on the NSE and ₹867.70 on the BSE for that date. Such comparisons are typically included in buyback documents to provide context on the offer price relative to recent market levels. The company’s communication does not provide a broader historical pricing range beyond the stated date. Investors evaluating tender participation generally compare the offer price to prevailing market prices nearer to the tender window as well.

Key facts at a glance

Timeline and what to track next

Market impact and why it matters

The immediate market relevance of the announcement is largely procedural, since it confirms the record date for entitlement and aligns with a buyback already approved by shareholders. The key numerical anchors are the buyback size of up to 8,68,100 shares, the offer price of ₹900, and the aggregate cap of up to ₹78.12 crore excluding transaction costs. For eligible investors, the record date fixes participation eligibility, while the tender route and small shareholder reservation can influence acceptance ratios across categories. The company’s statement that it will fund the buyback from free reserves and surplus, and not from borrowings, is a material detail for those assessing balance sheet conservatism. Auditor confirmations on solvency and regulatory compliance also support the execution framework for the buyback as described.

Conclusion

Gandhi Special Tubes has set August 21, 2026 as the record date for its shareholder-approved tender-offer buyback, priced at ₹900 per share and capped at up to ₹78.12 crore. The buyback follows the August 12, 2026 AGM where the special resolution received 99.99% support and shareholders also approved a final dividend of ₹15 per share. The next milestones for investors are the entitlement determination based on the record date and the subsequent tender offer process, which the company expects to complete within 12 months from the special resolution approval.