The Board of Directors of Transport Corporation of India Limited met on September 29, 2026, and approved two significant business proposals: a ₹150 crore share buyback and the strategic incorporation of a wholly owned subsidiary in the People's Republic of China. The meeting, which commenced at 11:15 AM and concluded at 1:30 PM, set the groundwork for expanding the company's global logistics presence while delivering value to its public shareholders. As per The Economic Times, the buyback will target up to 15.63 lakh fully paid-up equity shares with a face value of ₹2 each.
The proposed buyback represents up to 2.03% of TCI's paid-up equity share capital as of March 31, 2026. According to The Economic Times, the buyback size equals 6.76% of the company's standalone paid-up equity share capital and free reserves, and 6.15% on a consolidated basis. The total buyback amount will not exceed ₹150 crore, excluding taxes, brokerage, filing fees and other transaction-related expenses. The shares will be repurchased on a proportionate basis through the "tender offer" route in accordance with SEBI Buy-Back of Securities Regulations, 2018, and the Companies Act, 2013. The buyback price has been fixed at ₹960 per equity share, payable in cash, bringing the total aggregate buyback size up to ₹150 crore.
To reinforce its global logistics network and establish an integrated India-China-Far East corridor, TCI is expanding into China by establishing a Wholly Owned Subsidiary (WOS). The entity will operate as a Wholly Owned Foreign-Owned Enterprise (WFOE) structured as a Limited Liability Company (LLC) within one of China's primary Free Trade Zones, specifically targeted in Shanghai or Shenzhen. According to The Economic Times, the new subsidiary will undertake comprehensive supply chain activities, with TCI holding 100% ownership and control upon official incorporation. The total financial commitment from TCI is capped at up to USD 2 million (or its equivalent in foreign currency), which may be deployed in one or multiple tranches through equity contribution, loans, or guarantees such as Standby Letters of Credit (SBLC).
Shareholders holding TCI shares as of the record date will be eligible to participate, except the promoters and promoter group, who informed the company they will not tender shares in the buyback. According to The Economic Times, 15% of the shares proposed to be bought back will be reserved for small shareholders, based on their holding on the record date or their entitlement based on small shareholders' holding, whichever is higher. The buyback will be listed on both BSE and NSE exchanges, with ICICI Securities appointed as the manager and buying broker, while ICICI Bank will act as the escrow agent. KFin Technologies has been designated as the registrar to the offer, ensuring transparent and efficient execution of the buyback process.
The buyback will be funded from TCI's securities premium account, free reserves or other legally permitted sources, as reported by The Economic Times. The company clarified it will not use borrowed money from banks or financial institutions to fund the payment to shareholders. The shares will be repurchased on a proportionate basis through the "tender offer" route, with the offer being listed on both BSE and NSE exchanges. The company has ensured that the buyback will be executed in compliance with all relevant regulations and will provide fair value to participating shareholders while strengthening its balance sheet.
