Dhanuka Agritech board okays share buyback. Full details

Dhanuka Agritech on Tuesday said its board has approved a proposal to buy back up to Rs 85 crore worth fully paid up shares of the agro chemicals company on a proportionate basis through the tend offer route. In an exchange filing Dhanuka Agritech said it will buy back up to 10,00,000 fully paid up equity shares, being 2.15  per cent of the total paid up share capital of the company at a price of Rs 850 per share.

The buyback's offer size would not exceed Rs 85 crore, which is less than 10 per cent of the paid up capital and free reserves as on March 31, 2022. Dhanuka Agritech  promoters, who own 70 per cent stake in the company, intend to participate in the proposed buyback.

Dhanuka Agritech said the buyback would be on a proportionate basis through the "tender offer" route as per SEBI Buyback Regulations and the Companies Act, 2013. The company board has decided November 18 as the record date for the purpose of buyback offer.

"The maximum buyback size shall not include any expenses incurred or to be incurred for the buyback like filing fees payable to the SEBL, merchant banker fees, stock exchange fee, transaction costs viz. brokerage, applicable taxes inter- alia including tax on distributed income to shareholders, Securities Transaction ‘Tax, Goods and Services Tax, Stamp duty, etc., public announcement publication expenses, printing and dispatch expenses and other incidental and related expenses," the company said.

At 3 pm, shares of Dhanuka Agritech were trading at Rs 730.70, up 0.54 per cent.

Earlier today, the company reported a 15.2 per cent YoY rise in net profit at Rs 73.02 crore for the September quarter compared with Rs 63.38 crore in the same quarter last year. Sales for the quarter rose 23 per cent YoY to Rs 542.90 crore compared with Rs 438.83 crore in the year-ago quarter.

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