Dhanuka Agritech Limited has announced a buyback of its fully paid-up equity shares through the tender offer route. The board approved the repurchase of 500,000 equity shares at a price of ₹1,400 per share. This initiative, valued at an aggregate of ₹70 crore, represents 4.20% of the company’s total paid-up equity capital and free reserves as of March 31, 2026. The record date for the buyback has been set for May 29, 2026.
Buyback Details and Pricing
Dhanuka Agritech Limited is initiating a strategic buyback of up to 500,000 equity shares, each with a face value of ₹2. The shares are to be purchased at a price of ₹1,400 per share, resulting in a total buyback size of ₹70 crore. This buyback is being executed on a proportionate basis via the tender offer route, allowing existing shareholders to participate and potentially maximize their returns.
Strategic Objective
The primary goal of this buyback is to enhance overall shareholder value by returning surplus cash to the members in an efficient manner. By reducing the total number of outstanding shares, the company aims to improve its return on equity and optimize its capital structure. The management has confirmed that this action is well within the company’s financial capacity, based on its audited financial statements as of March 31, 2026.
Important Dates and Participation
The company has designated May 29, 2026, as the Record Date to determine the eligibility of shareholders to participate in the buyback. Eligible shareholders will receive a letter of offer containing details on the entitlement ratio and instructions for participation. The buyback process will be facilitated through the stock exchange mechanism, ensuring a transparent and structured exit for interested shareholders.
Financial Health and Compliance
In the lead-up to this announcement, the board of directors conducted a thorough inquiry into the company’s affairs. They have provided a formal declaration of solvency, confirming that the company is capable of meeting its financial obligations and will not be rendered insolvent within one year from the date of the board resolution. The buyback is fully supported by the company’s internal cash reserves and accruals.
Source: BSE
