Fairchem Organics bought back shares at ₹800 per share through a tender offer that ran from 8 January 2026 to 14 January 2026 (record date 5 January 2026), with the shares listed on the BSE, NSE. Shareholders on the register on 5 January 2026, the record date, were eligible to tender. The offer covered 4,25,000 shares, 3.26% of the equity, about ₹34 crore.
The buyback price was 14.8 percent above the closing price of ₹697.05 on 20 November 2025, the last close before the offer; a small shareholder could tender up to 250 shares within the two-lakh-rupee limit. Fairchem Organics Limited was incorporated in 2019 and operates as a specialty oleo-chemicals and nutraceutical ingredients manufacturer. The company produces dimer acids, monomer acids, linoleic acid, isostearic acid, and other value-added fatty acids used in coatings, adhesives, inks, lubricants, cosmetics, and industrial applications.
The company has conducted its operations mainly through a manufacturing facility located at Chekhala, Sanand, in Ahmedabad, Gujarat. The raw materials are procured from edible oil refineries across India. The company has diversified its customer base in both domestic and international markets across various industrial categories, with strong long-term client relationships. Fairchem Organics is institutionally promoted by Fairfax India Holdings, which brings industry expertise and strategic support.
| Acceptance | Shares accepted | Profit |
|---|---|---|
| 33% | 82 | ₹8,441 |
| 50% | 125 | ₹12,868 |
| 75% | 187 | ₹19,251 |
| 100% | 250 | ₹25,737 |
Before brokerage and tax, on the maximum small-shareholder holding at the last close before the offer; the offer has since closed.
| Metric | 31-Mar-25 | 31-Mar-24 |
|---|---|---|
| Profit After Tax | 21.97 | 40.5 |
| Revenue | 539.24 | 622.61 |
| Total Assets | 401.83 | 334.31 |
The Buyback will help the Company to distribute surplus cash to its shareholders holding equity shares thereby enhancing the overall return for them The Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve a reservation of up to 15% of the Equity Shares proposed to be brought back by the Company or the actual number of Equity Shares entitled as per the shareholding of small shareholders on the Record Date, whichever is higher.
The Company believes that this reservation for small shareholders would benefit a significant number of the Company's public shareholders, who would be classified as 'Small Shareholders';
The Buyback is generally expected to improve return on equity through the distribution of cash and improve earnings per share by reduction in the equity base of the company, thereby leading to long-term increase in shareholder's value, and The Buy Back gives an option to the shareholders holding Equity Shares of the Company, to either (i) choose to participate and get cash instead of Equity Shares to be accepted under the Buy Back Offer or (ii) choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buy Back Offer, without additional investment.
In a tender offer the company fixes a price, usually above the market price, and invites every shareholder who held shares on the record date to offer some or all of them back. The entitlement ratio says how many shares you may tender for every share you hold, and because most offers are oversubscribed the acceptance ratio, the share of tendered shares the company actually buys, is known only after the offer closes.
Shares are tendered through your broker during the offer window; accepted shares are paid for at the buyback price and the rest return to your demat account within a few days of the close.
Fifteen percent of every tender offer is reserved for small shareholders, defined as those whose holding in the company was worth two lakh rupees or less at the market price on the record date. Because far fewer shares are tendered in that category, its entitlement ratio is usually much higher than the general category's, and that reservation is the reason retail investors follow buybacks at all.
The figures on this page show how many Fairchem Organics shares fit within the limit, what they cost at the last closing price, and what the profit would be at different acceptance ratios, before brokerage and tax.
Since October 2024 the amount a shareholder receives in a buyback is taxed as a dividend in their hands at their slab rate, and the cost of the accepted shares becomes a capital loss that can be set off against capital gains. That makes the after-tax result quite different from the headline premium, and for a shareholder in a high tax bracket a buyback with a modest premium can be worth less than selling on the exchange.
Work it through for your own bracket, or ask a tax adviser, before tendering.
₹800 per share, 14.8 percent above the closing price of ₹697.05 on 20 November 2025, the last close before the offer. The premium over the market price is what made tendering worthwhile.
5 January 2026. Shareholders had to hold the shares in their demat account on that date, which meant buying them by 2 January 2026 so that delivery settled in time.
The tender window ran from 8 January 2026 to 14 January 2026. Shares were tendered through brokers, and tender forms were accepted until 14 January 2026.
29/488: the company accepted 29 shares for every 488 held, about 5.9 percent of a small shareholder's holding, before any unaccepted shares from other categories were redistributed. The general category ratio was 55/606.
Up to 250 shares, which is the two-lakh-rupee small-shareholder limit divided by the buyback price of ₹800. At the closing price of ₹697.05 that holding cost about ₹1,74,263.
The offer closed on 14 January 2026. The company has not published the final acceptance ratio; the table shows what the profit would have been at 33 to 100 percent acceptance. At 33 percent the profit on a maximum small-shareholder holding would have been about ₹8,441; at 100 percent about ₹25,737, before brokerage and tax.
Accepted shares were paid for at ₹800 and unaccepted shares were returned to demat accounts by 21 January 2026.
For buybacks completed after 1 October 2024 the amount received is taxed as dividend income at your slab rate, and the cost of the accepted shares becomes a capital loss that can be set off against capital gains. Confirm the treatment for your own position with a tax adviser.