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 Record Date: Jan 05 2026
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:

The proposal to buyback not exceeding 4,25,000 (Four Lakhs Twenty Five Thousand) equity shares of the Company (representing 3.26% of the total number of equity shares in the paid up share capital of the Company) at a price of  Rs. 800/- (Rupees Eight Hundred Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 34,00,00,000 (Rupees Thirty-Four Crore only).

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?

1. Firstly, to be eligible for the buyback the investor should have shares Fairchem Organics Limited in Demat or physical form as on the record date [05-01-2026]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To be updated] by selling your shares through your broker on NSE or BSE 3. Then on [To be updated], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 250 Shares at CPM of Rs. 675 (2,00,000/800)
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%

19 Comments

    The stock price is expected to cross 800 tomorrow. Shall we sell or proceed with the tender, anticipating a 100% AR?

    Reply

      if you have already participated in previous buyback, you have capital loss.. sell the share and sett off that… keep the income reseve for future buyback if any… plus,why u wanna block 10% tds for 7months?

      Reply

        Thank you Bro for the suggestion. I want to participate in BB to generate as much as STCL (to set off STCGs) 🙂 No issue with the 10% TDS since it will be adjusted against the advance tax. Worried about the stock price after the BB close date since it is trading at a high valuation. As long as AR > 40% and the Stock price > 500, there will be no financial loss.

        Reply

          I think tgese numbers are very much possible… with the price hardly 5-10% difference, AR will be good and price if 500 is unlikely

          Reply

        Have 95 at 695 fairchem and 140 matrimony at 525… waiting for Thursday as the payment of VLS and NURECA arrives then will start taking positions…do u wanna connect ob social media?

        Reply

    Nectar Lifesciences Ltd proposed a buyback for Rs81crore at Rs27 per share, an aggrigate of 13.38% of whole company, which promoters not participating at all… that means public which holds 54.37% of company give away 13.38%… good AR expected with a wooping 50% premium over CMP….record date being December 24, 2025… price will definately move tomorrow

    Reply

      TR of 63 crore… maybe that got realised or it is borrowings… either way, company is trading at very high valuations

      Reply

    VLS Finance !

    Buyback approved for 2671378 shares @ 380

    Record date -12th December

    Special condition- only one promoter will allowed to tender his shares !!

    Reply

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