Garware Technical Fibres Limited has announced the approval of a share buyback program aimed at optimizing returns for its shareholders. The company plans to repurchase up to 1,617,500 equity shares at a price of ₹680 per share. This initiative represents an aggregate investment of ₹110 crore, reflecting the company’s strong financial position and its commitment to enhancing long-term value for investors while maintaining its robust balance sheet.
Buyback Details and Financial Scope
The Board of Directors has authorized the buyback of 1,617,500 fully paid-up equity shares, which accounts for 1.63% of the company’s total paid-up equity share capital. Set at a price of ₹680 per share, the total size of the buyback is capped at ₹110 crore. This amount represents 9.46% and 9.35% of the company’s total paid-up equity share capital and free reserves as per the audited financials for the year ended March 31, 2025.
Strategic Rationale and Timeline
The decision to initiate this buyback is driven by the company’s objective to optimize shareholder returns and improve overall equity value. The process will be executed through the tender offer route. The company has designated Wednesday, May 20, 2026, as the record date to identify eligible shareholders. The funds allocated for this program will be sourced from the company’s internal accruals and cash balances, ensuring no reliance on borrowed capital.
Execution and Compliance
To ensure a smooth execution, the Board has delegated authority to a dedicated Buyback Committee, which includes the CFO and key company officials. The company has also appointed Ambit Private Limited as the merchant banker and MUFG Intime India Private Limited as the registrar for the issue. Following the completion of the buyback, all acquired shares will be extinguished and destroyed to ensure a reduction in share capital, strictly adhering to all applicable corporate governance standards.
Source: BSE
