FDC approves 120 crore rupee share buyback at nearly 41% premium
Key Facts
FDC’s board approved on October 27, 2026, a buyback of up to 2,400,000 shares at 500 rupees per share, for a total value not exceeding 120.00 crore rupees, through a proportionate tender offer. The offer price is about 41% above the stock’s previous-session close of 353.80 rupees on October 27, according to Business Upturn. The targeted shares represent 1.47% of the company’s total paid-up capital. The proportionate tender route means the programme is intended to buy shares under the specified offer mechanism, while the proposed number of shares remains capped at 2,400,000. The company said in its disclosure that the offer size is less than 10% of paid-up capital and free reserves, based on the latest audited financial statements dated March 31, 2026.
The buyback approval came alongside the announcement of second-quarter results for fiscal 2027. Consolidated operating revenue was 572.1 crore rupees, up from 473.0 crore rupees in the second quarter of fiscal 2026. Profit for the period reached 49.1 crore rupees, compared with 28.4 crore rupees in the year-earlier period. Earnings before interest, taxes, depreciation and amortisation were 64 crore rupees in the second quarter of fiscal 2027. The margin on these earnings rose to 11.2%, from 7.1% in the second quarter of fiscal 2026, according to figures reported by Business Upturn.
In trading on October 28, FDC shares rose as much as 8.56% to 384.10 rupees, compared with the previous close of 353.80 rupees, according to Business Upturn. This was the stock’s biggest gain during the session, not its closing gain. At 12:23 p.m. India time, the stock was up 5.86% at 374.55 rupees. These levels put the trading move in the context of the announced buyback premium, with the offer price at 500 rupees per share. The stock’s move during the session coincided with the quarterly results announcement and the board’s approval of the programme.
The board noted the promoters’ and promoter group’s intention to participate in the proposed buyback. The cited disclosure did not specify how many shares the group intends to tender. The 500-rupee price remains the programme’s announced maximum price, while the company’s terms allow the board, up to one working day before the record date, to increase the maximum price and reduce the number of targeted shares. Any such adjustment must keep the total offer value unchanged. The relationship between price and share count could therefore change before the specified date, within the programme’s total value cap of 120.00 crore rupees.
The board set November 13, 2026, as the record date to determine which shareholders are eligible to participate, according to Business Upturn. The company said it would issue the public announcement and documents setting out the buyback procedures, dates and regulatory details later, in accordance with applicable regulations. Those documents had not been issued when the approval was announced, so details of the offer’s execution and specific dates remained subject to the subsequent announcement. The board may adjust the price and share count under the announced terms up to one working day before the record date. The November 13 date sets the next step for shareholders, while the public announcement is expected to explain how to tender shares and the process timetable.