Fairchem Organics Announces ₹3,400 Lakh Share Buyback at ₹800 Per Share
Fairchem Organics Limited has approved a share buyback of up to 4,25,000 equity shares at ₹800 per share, totaling ₹3,400 lakhs. This represents 3.26% of the company's existing paid-up equity share capital. The buyback will be executed through a tender offer route and is subject to shareholder approval via postal ballot. Promoters and Promoter Group members will not participate in the buyback. The buyback price offers a premium over the current market price, and the total amount constitutes 16.00% of the company's total paid-up equity share capital and free reserves.

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Fairchem Organics Limited , a leading chemical manufacturing company, has announced a significant share buyback program, demonstrating confidence in its financial position and commitment to enhancing shareholder value.
Buyback Details
The Board of Directors of Fairchem Organics Limited has approved a buyback of up to 4,25,000 equity shares, representing 3.26% of the company's existing paid-up equity share capital. The buyback will be executed through a tender offer route at a price of ₹800 per share, for an aggregate amount not exceeding ₹3,400 lakhs.
| Buyback Details | Value |
|---|---|
| Number of shares | 4,25,000 |
| Price per share | ₹800.00 |
| Total buyback amount | ₹3,400.00 lakhs |
| % of existing paid-up capital | 3.26% |
Shareholder Approval and Process
The proposed buyback is subject to shareholder approval through a special resolution via postal ballot, including remote e-voting. The company will communicate the process, timelines, and other details regarding the postal ballot in due course.
Key Points
- The buyback price of ₹800 per share represents a premium over the current market price, potentially benefiting participating shareholders.
- The buyback size of ₹3,400 lakhs constitutes 16.00% of the aggregate of the company's total paid-up equity share capital and free reserves, based on the latest audited financial statements.
- Promoters and members of the Promoter Group have chosen not to participate in the proposed buyback, which may increase the proportionate shareholding of public shareholders post-buyback.
Pre-Buyback Shareholding Pattern
The shareholding pattern of Fairchem Organics Limited was as follows:
| Category | Number of Shareholders | Number of Shares | % of Share Capital |
|---|---|---|---|
| Promoter & Promoter Group | 4 | 79,67,823 | 61.19% |
| Public Shareholders | 29,517 | 50,53,079 | 38.81% |
| Total | 29,521 | 1,30,20,902 | 100.00% |
Conclusion
The share buyback announcement by Fairchem Organics Limited represents a strategic move to optimize its capital structure and potentially enhance shareholder returns. Shareholders should carefully consider the offer and its implications before making a decision to participate in the buyback program.
Historical Stock Returns for Fairchem Organics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.33% | +8.32% | -9.63% | -14.65% | -11.01% | +7.13% |

































