Dhanuka Agritech Limited has announced a significant buyback program, aiming to repurchase up to 5,00,000 equity shares. The buyback price is set at ₹1,400 per share, with an aggregate value not exceeding ₹70 crore. This move, approved by the Board of Directors on May 19, 2026, is part of the company’s strategy to enhance shareholder value and optimize its capital structure. The buyback will be conducted via the tender offer route.
Dhanuka Agritech Buyback Details
Dhanuka Agritech Limited has officially announced its intention to buy back up to 5,00,000 fully paid-up equity shares. The buyback price has been fixed at ₹1,400 per equity share, payable in cash. The total amount allocated for this buyback initiative is capped at ₹70 crore. This strategic move was formally approved by the company’s Board of Directors during a meeting held on May 19, 2026.
Buyback Mechanism and Schedule
The buyback will be executed through the tender offer route, adhering to the SEBI Buyback Regulations and utilizing the stock exchange mechanism. The designated record date for determining eligible shareholders is Friday, May 29, 2026. The buyback offer period will commence on Thursday, June 04, 2026, and will conclude on Wednesday, June 10, 2026. All completed tender forms and supporting documents must be received by the Registrar by the closing date.
Shareholding and Entitlement
The buyback is open to all eligible shareholders as of the record date. The entitlement ratio for the buyback is set at 1 Equity Share for every 15 Equity Shares held for small shareholders, and 5 Equity Shares for every 518 Equity Shares held for general category shareholders. The company has reserved a portion for small shareholders, with the actual number being the higher of 15% of the total buyback size or the calculated entitlement.
Financial Rationale and Impact
The buyback is aimed at returning surplus cash to shareholders, enhancing return on equity, and optimizing the company’s capital structure. The total buyback size represents 4.20% of the paid-up equity capital and free reserves as of March 31, 2026. The company anticipates that the buyback will improve its return on net worth and earnings per share metrics. Funds for the buyback will be sourced from the company’s free reserves.
Key Dates Summary
A summary of the key dates for the buyback activities is as follows:
- Board Meeting Approving Buyback: May 19, 2026
- Public Announcement: May 21, 2026
- Record Date: May 29, 2026
- Buyback Opening Date: June 04, 2026
- Buyback Closing Date: June 10, 2026
- Last Date for Receipt of Documents: June 10, 2026
- Last Date for Share Dispatch/Payment: June 17, 2026
Source: BSE
