Atul to buy back up to ₹90 crore of its shares at up to ₹7,500 each

Capital raise
Chemicals - Speciality

Blacklitt Research27 October 20263 min read

Atul (NSE: ATUL) has approved a buy-back of equity shares of face value ₹10 each from the open market, for a total consideration not exceeding ₹90 crore excluding transaction costs, it said in a filing on 27 Oct 2026. The board approved it at its meeting on 23 Oct 2026. The maximum price is ₹7,500 a share, and the indicative maximum is 1,20,000 shares.

Key highlights

Maximum consideration: ₹90 crore, excluding transaction costs
Maximum price: ₹7,500 per equity share, payable in cash
Indicative maximum shares: 1,20,000, or 0.41% of equity shares
Buy-back period: up to 66 working days from 2 Nov 2026

The buy-back in numbers

Item	Detail
Mode	Open market through NSE and BSE, by order matching mechanism
Maximum consideration	₹90 crore, excluding transaction costs
Maximum price	₹7,500 per equity share, in cash
Indicative maximum shares	1,20,000, representing 0.41% of total equity shares
Minimum utilisation	₹67.50 crore, being 75% of the maximum
Utilisation in initial half	₹36 crore, being 40% of the maximum
Escrow	₹22.50 crore with State Bank of India, being 25% of the maximum
Opening and last date	Opens 2 Nov 2026; last date 8 Feb 2027 under the timetable, or earlier

Size against reserves and market value

The maximum buy-back size is 1.72% of standalone paid-up capital and free reserves as at 31 Mar 2026, and 1.69% on a consolidated basis. The standalone amount permissible under the board approval route is ₹523.46 crore, and the ₹90 crore maximum is within that figure.

At the 27 Oct 2026 close, Atul's market value was ₹15,937 crore, so the maximum consideration is about 0.56% of it. The company's latest quarter, Q2 FY27, reported consolidated net profit of ₹158.71 crore.

Funding and minimum utilisation

The buy-back will be funded from free reserves, current surplus, cash and cash equivalents or internal accruals, and not from borrowed funds. Consideration will be paid only in cash through normal banking channels.

The minimum amount to be utilised is ₹67.50 crore, and ₹36 crore must be utilised within the initial half of the buy-back period. An escrow account titled Atul Limited - Buy-back - Escrow Account 2026 is to be opened with State Bank of India, holding ₹22.50 crore.

Promoters and the solvency opinion

Promoters and the promoter group, who held 45.33% before the buy-back, will not participate, and the buy-back will not be made from them or from persons in control of the company. The board formed the opinion that the company will not be rendered insolvent within one year from 23 Oct 2026.

The statutory auditor, Deloitte Haskins & Sells LLP, issued a report dated 23 Oct 2026 on the statement of permissible capital payment.

What the buy-back means for Atul's shareholders

The company states that the buy-back is expected to enhance overall long-term shareholders' value without any material impact on profitability, except to the extent of reduction in the amount available for investment. The company is not undertaking the buy-back to delist its equity shares.

Not stated: the price at which shares will actually be bought, the number of shares that will be bought in practice, the reason for buying back beyond the surplus funds and long-term value the company cites, and the effect on earnings per share. The next dated step is the opening of the offer on 2 Nov 2026.

Reference: Original filing (PDF)

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