Gandhi Special Tubes to buy back ₹78 cr of shares at ₹900 apiece
The company reported a 16.5% jump in annual net profit to ₹68.4 crore and proposed a ₹15 per share dividend alongside the buyback.
What's new
- Board approved a buyback of 8.68 lakh shares at ₹900 each.
- Annual net profit rose to ₹68.4 crore from ₹58.7 crore.
- Dividend of ₹15 per share recommended for the year.
Why this matters
The buyback represents 7.14% of equity and roughly 6.9% of the company's market capitalization. Returning cash via both a high-payout dividend and a tender offer suggests management is comfortable with the company's current cash generation profile.
What we're watching
- Shareholder approval for the buyback proposal.
- The timeline for the tender offer process.
- Whether revenue growth of 11% can be sustained in FY27.
The full read
Gandhi Special Tubes is returning capital to shareholders after a year of growth. The board approved a buyback of up to 8.68 lakh shares at ₹900 each, a move that will cost the company ₹78.1 crore.
This tender offer covers 7.14% of equity and 6.9% of the company's market capitalization.
The decision follows a strong FY26 performance where net profit rose 16.5% to ₹68.4 crore on revenue of ₹191.8 crore, while shareholders are also set to receive a dividend of ₹15 per share. The company's ability to fund both a significant buyback and a high-payout dividend points to a healthy cash position. It is a clear signal of confidence. The next step is securing shareholder approval to move forward with the buyback.
Questions answered
- What is the scale of the proposed buyback?
- The company plans to spend up to ₹78.1 crore to retire 8.68 lakh shares, which accounts for 7.14% of its total equity.
- At what price will the buyback occur?
- The board has set the buyback price at ₹900 per share.
- How did the company perform in FY26?
- Gandhi Special Tubes recorded revenue of ₹191.8 crore and a net profit of ₹68.4 crore, marking an 11% increase in revenue and a 16.5% increase in profit over the previous year.
- What dividend has the board recommended?
- The board recommended a dividend of ₹15 per share.