Dhanuka Agritech Limited has issued a clarification regarding its proposed Stock Appreciation Rights Plan, 2026 (SAR 2026). The company detailed the methodology for calculating the appreciation amount payable to participants upon exercise of SARs. This clarification aims to provide transparency to proxy advisory firms and stakeholders concerning the valuation of equity shares under the plan.
Dhanuka Agritech Clarifies SAR Plan 2026 Methodology
Dhanuka Agritech Limited has provided a clarification concerning the proposed Dhanuka Stock Appreciation Rights Plan, 2026 (SAR 2026). This announcement follows discussions and queries from proxy advisory firms, aiming to ensure transparency in the plan’s implementation.
Determination of Appreciation Amount
The company detailed the methodology for determining the appreciation amount payable to participants who exercise their SARs. Each SAR exercised will entitle the participant to receive a cash amount equivalent to the appreciation in the value of the underlying equity share. This appreciation is calculated in accordance with the provisions of the SAR Plan.
Calculation Formula
The formula for calculating the Appreciation Amount is as follows:
Appreciation Amount = (Fair Market Value as on the date of Exercise of SAR – Exercise Price) × Number of SARs Exercised
The announcement further specifies that the exercise price shall be no less than the closing Market Price of the Shares on the date of grant, particularly where a higher number of shares have traded on that date.
This clarification is intended for the information and records of the recipients, including the Listing Department of the National Stock Exchange of India Limited and the Department of Corporate Services-Listing at BSE Ltd.
Source: BSE
