Description

Letter of Offer for buyback of up to 4,25,000 equity shares representing 3.26% of paid-up equity share capital at ₹800 per share for aggregate consideration of ₹3,400 lakhs through tender offer route.

Summary

Fairchem Organics Limited (CIN: L24200GJ2019PLC129759) has issued a Letter of Offer dated January 6, 2026 for buyback of up to 4,25,000 fully paid-up equity shares of face value ₹10 each, representing 3.26% of the total paid-up equity share capital as on March 31, 2025. The buyback is being conducted through the tender offer route at a price of ₹800 per equity share, for an aggregate consideration of up to ₹3,400 lakhs (₹34 crores). The offer is open to all eligible equity shareholders as on the Record Date of Monday, January 5, 2026, on a proportionate basis subject to small shareholder reservation.

Key Points

  • Buyback of up to 4,25,000 equity shares of face value ₹10 each
  • Buyback price: ₹800 per equity share (payable in cash)
  • Represents 3.26% of total paid-up equity share capital as on March 31, 2025
  • Total consideration: Up to ₹3,400 lakhs (₹34 crores)
  • Method: Tender Offer route on proportionate basis
  • Small shareholder reservation provided
  • Record Date: Monday, January 5, 2026
  • Manager to Buyback: Motilal Oswal Investment Advisors Limited
  • Registrar to Buyback: MUFG Intime India Private Limited
  • Contact Person: Jatin Jain, Company Secretary and Compliance Officer

Regulatory Changes

Not applicable - This is a corporate action notification, not a regulatory change.

Compliance Requirements

  • Buyback is being undertaken in accordance with Article 43 of the Articles of Association of the Company
  • Conducted as per Sections 68, 69 and 70 and other applicable provisions of the Companies Act, 2013
  • Complies with Share Capital Rules and Management Rules
  • In accordance with LODR Regulations
  • Complies with SEBI (Buy Back of Securities) Regulations, 2018, as amended
  • Subject to SEBI Circulars and approvals from statutory, regulatory or governmental authorities including SEBI and stock exchanges
  • Eligible shareholders as per records made available by Depositories as on Record Date

Important Dates

  • Letter of Offer Date: January 6, 2026
  • Record Date: Monday, January 5, 2026
  • Reference Date for Paid-up Equity Capital: March 31, 2025

Impact Assessment

For Shareholders: Eligible shareholders as on the Record Date have an opportunity to tender their shares at ₹800 per share, representing a premium over face value of ₹10. The proportionate basis ensures fair allocation with additional reservation for small shareholders. Shareholders need to review the Letter of Offer and consult with their stock brokers, investment consultants, the Manager to Buyback, or Registrar to Buyback for participation details.

For Company: The buyback will result in reduction of equity capital by up to 3.26%, with cash outflow of up to ₹34 crores. This indicates management’s confidence in the company’s fundamentals and represents a capital restructuring exercise to optimize capital allocation and potentially enhance shareholder value.

Market Impact: The buyback at ₹800 per share provides price support and may positively impact market sentiment for Fairchem Organics Limited shares. The tender offer mechanism ensures transparency and regulatory compliance in the buyback process.

Impact Justification

Material corporate action involving buyback of 3.26% equity at premium price of ₹800 per share, significant for shareholders as on record date with aggregate outlay of ₹34 crores