DCW approves ₹40 crore share buyback at up to ₹58 a share

Capital raise
Chemicals

Blacklitt Research29 October 20263 min read

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DCW (NSE: DCW) has approved a buyback of its fully paid-up equity shares for up to ₹40 crore at a maximum price of ₹58 a share, it said in a filing on 29 Oct 2026. The buyback is through the open market and excludes promoters and the promoter group. The same Board meeting approved unaudited results for the quarter and half year ended 30 Sep 2026.

Key highlights

Maximum buyback size: ₹40 crore, excluding buyback expenses
Maximum buyback price: ₹58 per equity share
Indicative maximum: 68,96,551 shares, 4.53% of paid-up capital and free reserves
Minimum buyback size: ₹30 crore, 75% of the maximum

The buyback in numbers

Item	Detail
Route	Open market, through the stock exchange mechanism
Eligible sellers	All shareholders other than promoters and the promoter group
Maximum size	₹40 crore, excluding buyback expenses
Minimum size	₹30 crore (75% of the maximum)
Maximum price	₹58 per equity share, payable in cash
Indicative shares	68,96,551 at the maximum size and price; 51,72,413 at the minimum size
Face value	₹2 per equity share

How the buyback is sized

The buyback covers fully paid-up equity shares with a face value of ₹2 each, under the SEBI (Buy-Back of Securities) Regulations, 2018, as amended. The Company will use at least ₹30 crore, which is 75% of the maximum size.

At the maximum size and price, the indicative count is 68,96,551 shares, which the filing puts at 4.53% of paid-up capital and free reserves as on 29 Oct 2026. The filing also says that is within the 10% limit for buybacks.

If the price paid is below ₹58, the number of shares could exceed 68,96,551. The number is still capped at the ₹40 crore size and at 25% of the existing paid-up equity capital.

Promoter stake before and after the buyback

Before the buyback, promoters and the promoter group hold 13,45,61,399 shares, or 45.59%, of the 29,51,55,017 equity shares in issue. Public holding is 54.41%. Promoters and the promoter group cannot take part in the open-market buyback.

Annexure B shows that if the maximum shares are bought back, the total falls to 28,82,58,466 shares, with promoters at 46.68% and public holding at 53.32%.

Results and tax matters in the same filing

The statutory auditor, V. Sankar Aiyar & Co., expressed an unmodified opinion on the unaudited results. Blacklitt's data puts standalone total income for the quarter at ₹669.98 crore, up 23.2% year on year, and net profit at ₹10.36 crore, down 25.0%.

The auditor's review report draws attention to an electricity tax demand of ₹54.91 crore, a customs duty demand of ₹12.44 crore plus interest, a fine and penalty of ₹26 crore on coal imports, and an income tax demand of ₹1.06 crore. The auditor says no provision has been made for these demands in view of the factors stated in the note.

On MAT credit, the review report cites a reduction of ₹16.94 crore for assessment years 2015-16 to 2024-25, while Note 4D gives ₹28.93 crore for the 10-year block ending A.Y. 2024-25.

What the buyback means for DCW's shareholders

The company's market value was ₹1,331 crore at the 29 Oct 2026 close of ₹45.08 a share. The maximum buyback price is ₹58 a share.

Why the buyback is proposed, how it will be funded, when the offer opens and at what price shares will be bought are not stated. The final share count and shareholding pattern will be known only after completion, and the Board has delegated the buyback to a Buyback Committee.

Reference: Original filing (PDF)

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