Fairchem Organics Limited Buyback 2025
Fairchem Organics Limited was incorporated on March 27, 2019, following the demerger of the oleo-chemical and nutraceutical business from Fairchem Speciality Limited. The restructuring created a pure-play specialty chemicals company, focused on value-added fatty acids and nutraceutical intermediates.
Manufacturer of Specialty Oleo-Chemicals
Fairchem manufactures high-value fatty acids such as dimer acid, linoleic acid, isostearic acid, and monomer acid, used in coatings, adhesives, printing inks, epoxy hardeners, and lubricants. These products serve as critical raw materials for niche industrial applications where consistency, chemical purity, and performance are essential.
Strong Niche Position in India
The company enjoys a dominant domestic position, as very few Indian players produce these specialty fatty acids at scale. Its deep technical know-how, long-term customer relationships, and secure supply arrangements act as strong entry barriers, protecting its market share against imports.
Sustainable Waste-to-Value Business Model
A key differentiator of Fairchem is its green business model. It procures waste by-products from vegetable oil refiners and converts them into high-end specialty products. This results in:
i) Lower raw material cost volatility
ii) Better EBITDA margins compared to standard oleo-chemicals
iii) Strong ESG positioning through waste utilization
Nutraceutical Intermediates Portfolio
Fairchem also produces mixed tocopherols and sterol concentrates, which are used to make antioxidant supplements and Vitamin E derivatives. This segment helps diversify revenue into high-margin health and nutraceutical markets, adding stability to earnings during industrial slowdowns.
Diverse End-Market Application
Its products are used across multiple sectors such as Coatings & Paints, Epoxy & Adhesives, Textiles, Printing Inks and Nutrition & Pharma. This diversity reduces dependence on any single industry, offering resilience against cyclical downturns.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Offer Amount: | ₹ 34 cr. |
| Date of Board Meeting approving the proposal: | Nov 20 2025 |
| Date of Public Announcement: | Nov 20 2025 |
| Buyback Offer Size: | 3.26% |
| Buyback Number of Shares: | 4,25,000 |
| FV: | 10 |
| Buyback Price: | ₹ 800 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (In cr) | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
| Sales + | 397 | 643 | 648 | 621 | 538 |
| Expenses + | 328 | 538 | 576 | 554 | 495 |
| Operating Profit | 69 | 105 | 72 | 67 | 43 |
| OPM % | 17% | 16% | 11% | 11% | 8% |
| Other Income + | 0 | 0 | 1 | 1 | 1 |
| Interest | 7 | 7 | 6 | 4 | 4 |
| Depreciation | 7 | 7 | 8 | 9 | 11 |
| Profit before tax | 56 | 91 | 59 | 55 | 30 |
| Tax % | 24% | 26% | 26% | 26% | 27% |
| Net Profit + | 42 | 68 | 44 | 40 | 22 |
| EPS in Rs | 32.62 | 52.15 | 33.41 | 31.1 | 16.87 |
| Dividend Payout % | 11% | 25% | 22% | 24% | 44% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 168750 | 168750 | 168750 | 168750 |
| No. of Shares Buyback | 82 | 125 | 187 | 250 |
| Buyback Profit | 10250 | 15625 | 23375 | 31250 |
| Profit% | 6.07% | 9.26% | 13.85% | 18.52% |
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VLS Finance !
Buyback approved for 2671378 shares @ 380
Record date -12th December
Special condition- only one promoter will allowed to tender his shares !!
Correction – 26,31,578 shares @ 380 price
Total size of buy back -100 crore !!