Gandhi Special Tubes Limited has formally extinguished 8,68,100 equity shares following the completion of its share buyback programme. The company notified the stock exchanges on September 17, 2026, confirming the reduction in its issued, subscribed and paid-up capital.

The extinguishment was executed in compliance with Regulation 11 of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018. Central Depository Services (India) Limited processed the deletion of the shares from dematerialised form on September 15, 2026.

Capital Structure Changes

Following the extinguishment, the company’s issued and paid-up equity share capital reduced from ₹6,07,60,000 (1,21,52,000 shares) to ₹5,64,19,500 (1,12,83,900 shares). The authorised share capital remained unchanged at ₹12,00,00,000.

Shareholding Pattern

The promoter holding decreased from 73.53% to 71.70% post-buyback. Foreign investors held 2.59% prior to the buyback but hold zero shares post-transaction. Financial institutions and banks increased their stake from 0.02% to 28.30%.

Response and Allocation

The registrar to the buyback, KFin Technologies Limited, received 273 valid bids for 15,69,115 equity shares. This represents an oversubscription of approximately 1.81 times the maximum number of shares proposed for buyback.

All valid bids were considered for acceptance in accordance with SEBI Buyback Regulations. Communications regarding acceptance or rejection were dispatched via email on September 9, 2026.

What the Numbers Show

The buyback response was heavily skewed towards larger shareholders. While small shareholders tendered only 12.69% of their reserved quota, general shareholders oversubscribed by 210.41%. This indicates that institutional and large retail investors were the primary participants in the offer, while smaller holders largely opted to retain their positions.

Promoter entities accounted for a significant portion of the shares sold. Manoj B Gandhi, B.M. Gandhi Investment Co LLP, and Gandhi Finance Co LLP collectively surrendered over 54% of the total shares bought back.

Gandhi Special Tubes Limited has dispatched the Letter of Offer for its proposed share buyback, confirming that the tender offer will open on Thursday, August 27, 2026. The company intends to repurchase up to 8,68,100 equity shares at ₹900 per share, aggregating to a maximum of ₹78.13 crore. The offer period will remain open until Wednesday, September 2, 2026.

Letter of Offer Dispatched

The company submitted the Letter of Offer and Tender Forms to the stock exchanges on August 25, 2026. Eligible shareholders holding equity shares as on the record date of Friday, August 21, 2026, are entitled to participate in the buyback. The Letter of Offer was dispatched electronically to shareholders who have registered their email addresses with the depositories or the company. Physical copies will be provided only upon specific request.

The newspaper advertisement intimating the dispatch was published on Wednesday, August 26, 2026, in Business Standard (English and Hindi editions) and Navshakti (Marathi edition). Shareholders can also check their entitlement via the Registrar’s website using their Folio Number, DPID/Client ID, or PAN.

Buyback Schedule

The key dates for the buyback process are as follows:

Entitlement Ratio

The buyback is offered on a proportionate basis. The entitlement ratios for eligible shareholders are detailed below:

Buyback Structure and Promoter Interest

The buyback represents 7.14% of the company’s total paid-up equity capital and is financed entirely from free reserves. The offer price of ₹900 per share carries a premium of approximately 246% over the book value of ₹260 per share as of March 31, 2026.

Promoter participation remains significant, with select promoters intending to tender up to 43,86,106 equity shares, roughly 50.5% of the total buyback size. Manoj B. Gandhi, the largest individual promoter, plans to tender 21,34,486 shares. The promoter group currently holds 73.53% of the equity share capital and has undertaken to comply with minimum public shareholding requirements post-buyback.

Regulatory Context

The proposal was approved by shareholders at the Annual General Meeting held on August 12, 2026, with 99.99% support. The special resolution received 91,83,078 votes in favor out of 91,83,088 valid votes. The buyback will be implemented through the tender offer route using the stock exchange mechanism, with Prime Securities Limited appointed as Manager to the Buyback and KFin Technologies Limited as Registrar.