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.

Gandhi Special Tubes Limited reported a strong start to FY27, with standalone net profit rising 29% year-on-year to ₹279.4 lakh for the quarter ended June 30, 2026. The Mumbai-based manufacturer saw revenue from operations expand 19% to ₹571.9 lakh, reflecting sustained demand in its core segments. Operating efficiency improved significantly, with EBITDA margin expanding to 46.58% from 43.11% in Q1FY26.

The company’s Board of Directors approved the unaudited financial results on August 12, 2026, alongside a limited review report from statutory auditors S.V. Doshi & Co. The board also noted the name change of Company Secretary Chaitali Kachalia to Mrs. Chaitali Parekh.

Financial Performance

Revenue growth was accompanied by an expansion in operating margins, as total expenses grew at a slower pace than income. Profit before tax stood at ₹361.2 lakh, up from ₹279.6 lakh in the corresponding period last year. Earnings per share (EPS) increased to ₹22.99 from ₹17.78 in Q1FY26.

Operational costs remained controlled, with employee benefits expenses rising 14% to ₹30.5 lakh and power & fuel costs increasing 33% to ₹38.3 lakh. Depreciation remained stable at ₹8.6 lakh.

What the Numbers Show

A significant portion of the company’s profitability improvement stems from non-operational sources. Other income surged to ₹103.7 lakh, primarily driven by a gain on fair value of investments of ₹93.2 lakh. This contrasts sharply with the previous quarter (Q4FY26), which recorded a loss of ₹62.4 lakh on similar items. While operational revenue grew steadily, the volatility in investment valuation highlights a dependency on market-linked gains for margin expansion in this period.

Auditor’s Note

S.V. Doshi & Co., the statutory auditors, issued a limited review report stating that nothing came to their attention to suggest the financial statements contained material misstatements. The figures for the quarter ended March 31, 2026, are balancing figures between audited full-year results and reviewed year-to-date figures.