Gandhi Special Tubes buyback: Aug 21 record date 2026

Corrigendum highlights on Letter of Offer dispatch

Gandhi Special Tubes issued a corrigendum that clarified the dispatch of the Letter of Offer for its proposed share buyback. The clarification comes alongside the company’s previously disclosed buyback terms, including the record date and the maximum amount to be deployed. While the corrigendum note focused on the Letter of Offer dispatch, the core timetable point for shareholders remains the same. The company has kept Friday, August 21, 2026, as the record date for determining eligibility for the tender offer buyback.

The buyback is structured as a shareholder-approved tender offer and is intended to be executed through the stock exchange mechanism. Gandhi Special Tubes has communicated that participation is voluntary, and eligible shareholders can tender part or all of their shares under the offer. The record date is central to the process because only those holding shares as of the close of business on that date can participate.

Record date fixed for August 21, 2026

The company has officially declared Friday, August 21, 2026, as the record date for the buyback. Shareholders whose names appear on the company’s register of members or in depository records by the close of business on that date will be entitled to tender their shares. The record date was fixed by the Buyback Committee constituted by the Board of Directors.

This record date announcement is also relevant for small shareholders, because the small shareholder classification is assessed based on holdings as of the record date. Gandhi Special Tubes has stated that a small shareholder is one holding equity shares with a market value not exceeding ₹2,00,000 on the record date.

Buyback size, price, and maximum outlay

Gandhi Special Tubes intends to buy back up to 8,68,100 fully paid-up equity shares. The repurchase price is set at ₹900 per equity share, payable in cash. Each equity share has a face value of ₹5.

The aggregate amount is capped at up to ₹78.13 crore, with another disclosure specifying ₹78.12 crore (excluding transaction costs such as brokerage, taxes, and filing fees). The company has indicated that transaction costs are separate from the stated cap. The buyback size represents 7.14% of the company’s total paid-up equity capital as of March 31, 2026.

Funding source and limits under buyback rules

The buyback is financed entirely from free reserves, using the company’s free reserves and surplus. Gandhi Special Tubes has confirmed it will not use borrowed funds to finance the acquisition of its own shares. It has also stated that the proceeds from the sale of shares purchased under the buyback will be transferred to the Capital Redemption Reserve Account.

Another disclosed metric places the buyback size at 24.9996% of paid-up capital and free reserves. This is a key compliance reference point because Indian buyback regulations link the maximum size of buybacks to paid-up capital and free reserves.

Premium to book value and recent market references

At ₹900 per share, the buyback price implies a premium of approximately 246% over the book value of ₹260 per share as of March 31, 2026. This relationship between buyback price and book value was explicitly disclosed along with the record date and buyback size.

The company also referenced closing market prices as of May 20, 2026, where the share was priced at ₹872.65 on the NSE and ₹867.70 on the BSE. Separately, GANDHITUBE’s stock price was stated as ₹893 as of August 25, 2026.

Eligibility, participation, and small shareholder reservation

The tender offer route means shareholders participate by tendering shares, subject to entitlement and acceptance as per the buyback process. Gandhi Special Tubes has said all equity shareholders, including promoters and promoter groups, are eligible to participate.

The company has stated it 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. This is aligned with the framework typically applied in tender offer buybacks to provide a defined reservation for smaller investors.

Promoter participation and disclosed tender capacity

In the disclosures provided, promoters may tender up to 4,386,106 shares. This disclosure sits alongside the broader eligibility statement that promoters and promoter groups can participate in the tender offer.

The company has not stated in the provided text how many promoter shares would actually be accepted, as acceptance depends on the final tender response and entitlement-based allocation. Investors typically track promoter participation because it can influence acceptance ratios for other shareholders, but the disclosed information here is limited to eligibility and the stated tender capacity.

Timeline, approvals, and completion window

The Board of Directors approved the buyback proposal at a meeting held on May 25, 2026. The company has described the buyback as a tender offer route program through the stock exchange mechanism, and that shares will be extinguished post completion.

Gandhi Special Tubes has also stated that the buyback is expected to be completed within 12 months from the date of the special resolution approval. In addition, the company scheduled its 41st Annual General Meeting (AGM) for Wednesday, August 12, 2026, at 11:00 a.m. IST.

Dividend recommendation mentioned alongside the buyback

Alongside the buyback proposal, the board recommended a 300% dividend, described as ₹15 per share. This dividend disclosure was presented together with the buyback terms of up to 8,68,100 shares at a maximum price of ₹900 per share and a maximum outlay of up to ₹78.13 crore.

For investors, these two actions are often tracked together because they reflect the company’s stated capital allocation approach for the period covered by the disclosures.

Key disclosed facts at a glance

Why the corrigendum and record date matter

The corrigendum on Letter of Offer dispatch matters operationally because the Letter of Offer is the core document that carries the detailed timetable and process steps for tendering shares. For shareholders, the record date remains the key eligibility checkpoint, because holding shares by the close of business on August 21, 2026 is required to participate.

The company has framed this as its first buyback since 2021, and the disclosed parameters including price, maximum shares, funding from free reserves, and the 12-month completion window provide the main guideposts. The next practical milestones for shareholders are the Letter of Offer dispatch and the subsequent tendering schedule, as clarified through the corrigendum and related filings.