Dhanuka Agritech Limited has announced a buyback of up to 500,000 equity shares at a price of ₹1,400 per share, amounting to a total consideration of ₹70 crore. The buyback, which commenced on June 4, 2026, aims to return surplus cash to shareholders and enhance shareholder value. The offer is open until June 10, 2026. This move is intended to optimize the company’s capital structure and improve its return on equity.
Dhanuka Agritech Announces Share Buyback
Dhanuka Agritech Limited has officially launched a buyback program for its fully paid-up equity shares. The company plans to repurchase up to 500,000 equity shares, representing approximately 1.11% of its total paid-up equity share capital. The buyback price is set at ₹1,400 per share, with the total aggregate consideration not exceeding ₹70 crore. This initiative is aimed at returning surplus cash to its shareholders and enhancing overall shareholder value.
Offer Details and Timeline
The buyback offer is being conducted through the tender offer route. The offer opened on Thursday, June 4, 2026, and will close on Wednesday, June 10, 2026. Eligible shareholders are invited to tender their shares during this period. The company has appointed Sundae Capital Advisors Private Limited as the Merchant Banker and Bigshare Services Private Limited as the Registrar to the buyback.
Key Financial and Structural Aspects
The buyback size of ₹70 crore represents 4.20% of the company’s aggregate paid-up equity capital and free reserves as of March 31, 2026. The buyback is funded through the company’s free reserves and does not involve any borrowed funds. Post buyback, the company’s net worth is projected to decrease, while key financial ratios such as Earnings Per Share and Return on Net Worth are expected to improve.
Shareholder Entitlement and Participation
The buyback is open to all eligible shareholders, including promoters, on a proportionate basis as of the record date, which was Friday, May 29, 2026. A portion of the buyback is reserved for small shareholders. The entitlement ratio for small shareholders is 1 equity share for every 15 equity shares held, and for general shareholders, it is 5 equity shares for every 518 equity shares held. Eligible shareholders can tender their shares through their respective brokers.
Compliance and Approvals
The buyback has been approved by the Board of Directors and is subject to statutory and regulatory approvals. The company has ensured compliance with relevant regulations, including the SEBI Buyback Regulations. The detailed process for tendering shares, including procedures for both dematerialized and physical holdings, is outlined in the Letter of Offer.
Source: BSE
