Dwarikesh Sugar surges more than 6% on buyback plans, fixes record date on March 20

Following the company's announcement of the buyback plan through an exchange filing on Friday, March 8, the share price of Dwarikesh Sugar surged by as much as 6.8%. The buyback entails the repurchase of 30 lakh equity shares, representing 1.5% of the company's equity share capital, for a total consideration of ₹31.5 crore. The buyback price is set at ₹105 per share, which represents a nearly 30% premium over Thursday's closing price.

As a result of this news, the share price of Dwarikesh Sugar rose by 6.8% in Monday morning's trade to ₹86.8 per share. However, after relinquishing early gains, the stock is currently trading 2.8% higher at ₹83.4 per share.

The company has also designated March 20, 2024, as the record date for the buyback, which will be conducted through the tender offer route.

In the recent quarterly results for Q3FY24, the company witnessed an 18% decline in revenue, amounting to ₹312 crore compared to ₹383 crore in the same quarter of the previous year. Additionally, the net profit for the company also saw a 7% year-on-year drop, reaching ₹9.8 crore for Q3FY24.

Over the past 12 months, the share price of Dwarikesh Sugar has recorded a negative return of 12% after the sector faced regulatory headwinds.