Dhanuka Agritech's ₹100 crore buyback offer opens tomorrow; check details

The share buyback offer by Dhanuka Agritech will open on Thursday, August 22, and conclude on August 28, 2024. Dhanuka Agritech, one of India's leading agro-chemical companies, informed exchanges earlier that its board approved a buyback of its fully paid-up equity shares through the tender offer route in its meeting held on August 2, 2024.

On Tuesday (August 20), the company said in its exchange filing that it proposes to buy back 5,00,000 equity shares (8.04% of the paid-up share capital) with a face value of ₹2 each for a consideration of ₹2,000 per equity share for an aggregate amount of up to ₹100 crore. 

Sundae Capital Advisors Private is the manager of the buyback, and Bigshare Services is the registrar.

Ratio of buyback

The ratio of the buyback is as below:

(i) in the case of small shareholders, 3 equity shares for every 28 equity shares held by such a small shareholder on the record date; and (ii) for eligible shareholders other than small shareholders, 5 equity shares for every 528 equity shares held by such eligible shareholder on the record date.

‘Small Shareholder’ means a shareholder of a listed company who holds shares or other specified securities whose market value, on the basis of the closing price of shares or other specified securities, on the recognised stock exchange in which the highest trading volume in respect of such security, as on record date, is not more than ₹200,000.

The record date for determining the eligible shareholders for the buyback offer was August 16, 2024.

Impact of Buyback Offer

"However, assuming response to the buyback is to the extent of 100% from all the eligible shareholders up to their buyback entitlement, the funds deployed by the company towards the buyback would be ₹100 crore on account of the reduced amount of funds available," it added.

On Wednesday, in the afternoon deals, shares of the company were trading 2.26% higher at ₹1,782.65 apiece on the BSE.