Dhanuka Agritech Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In this article, they will discuss about Dhanuka Agritech Limited Buyback offer, buyback price, buyback size, Dhanuka Agritech Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time share price of this Buyback, click on this link – Dhanuka Agritech Share Price
Dhanuka Agritech Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | OCTOBER 20, 2020 |
| Closing Date | NOVEMBER 02, 2020 |
| Buyback Offer Amount | Rs.100 CRORES |
| Buyback No. of Shares | 10,00,000 |
| Face Value | Rs.2 |
| Date of Buyback Approval | July 22, 2020 |
| Date of Public Announcement | September 16, 2020 |
| Buy Back Price | Rs.1000 |
| Buy Back Premium | 22.93% |
| Date of Board Meeting | July 22, 2020 |
Dhanuka Agritech Buyback Opening and Closing Date
The starting and closing date of this buyback is from OCTOBER 20, 2020 to NOVEMBER 02, 2020.
Dhanuka Agritech Buyback Cash Offer
Cash Offer to Buy-back up to 10,00,000 fully paid-up equity shares of the Company of face value of Rs.2 each, representing 2.10% of the issued, subscribed and paid-up Equity Shares of the Company.
Dhanuka Agritech Buyback Record Date
The decided record date is September 28, 2020.
Dhanuka Agritech Buyback Price
At a price of Rs.1000 per Equity Share.
Dhanuka Agritech Buyback Size
At a buyback price of Rs.1000 payable in cash for an aggregate maximum amount of Rs.100 CRORES.
Dhanuka Agritech Limited Buyback Acceptance Query
You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.
Dhanuka Agritech Limited Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 1000 | 200000 | 59980 | 8.57% |
| 40% | 400 | 1000 | 400000 | 119960 | 17.13% |
| 60% | 600 | 1000 | 600000 | 179940 | 25.70% |
| 80% | 800 | 1000 | 800000 | 239920 | 34.27% |
| 100% | 1000 | 1000 | 1000000 | 299900 | 42.84% |
Profit is calculated from Oct 19, 2020 share price i.e. Rs.700.1 per share of Dhanuka Agritech Limited.
According to the above table, if a shareowner applies for 1000 shares of Dhanuka Agritech limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.1000 per share & receive Rs.59980 as profit amount & 8.57% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.1000 & receive a profit of Rs.179940 @ 25.70% profit percentage.
Dhanuka Agritech Limited Buyback Overview
The Company is engaged in the business of manufacturing of wide range of agro-chemicals like herbicides, insecticides, fungicides and plant growth regulators in various forms – liquid, dust, powder and granules.
The Company has three facilities located at Sanand (Gujarat); Udhampur (Jammu and Kashmir); Keshwana (Rajasthan) and quality control laboratory located at Sanand (Gujarat) and Keshwana (Rajasthan) certified by National Accreditation Board for Testing and Calibration Laboratories.
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Company Finances – Dhanuka Agritech Limited
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. Crores]
| Particulars | June 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 381.21 | 1145.16 | 1027.04 | 978.67 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 308.56 | 946.71 | 859.84 | 796.58 |
| Interest | 0.27 | 1.56 | 0.89 | 0.87 |
| Depreciation | 3.16 | 16.36 | 12.35 | 14.21 |
| Profit before tax | 69.22 | 180.53 | 153.96 | 167.01 |
| Provision for tax (including Deferred Tax) |
17.43 | 39.18 | 41.38 | 40.83 |
| Profit /(Loss) after tax | 51.79 | 141.35 | 112.58 | 126.18 |
| Equity Share Capital | 9.52 | 9.52 | *9.52 | 9.82 |
| Reserve and Surplus | Not available | 691.17 | 625.46 | 618.90 |
| Networth | Not available | 706.63 | 641.27 | 632.41 |
| Total Debt | NA | nil | nil | *nil |
Dhanuka Agritech Limited Buyback Dates
| Date of Board Meeting approving the Buyback | July 22, 2020 |
| Date of publication of Public Announcement for Buyback | September 17, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | September 28, 2020 |
| Buyback Opening date | October 20, 2020 |
| Buyback Closing date | November 02, 2020 |
| Last Date of verification of Tender Forms by the Registrar | November 05, 2020 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | November 09, 2020 |
| *Last date of Settlement of Bids on the BSE Limited | November 10, 2020 |
| Last date of return of unaccepted Equity Shares by BSE Limited | November 10, 2020 |
| *Last date of Extinguishment of Equity Shares | November 16, 2020 |
Details of Public Announcement
The Public Announcement was published on September 17, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution:
| Publication | Language | Edition |
| Financial Express | English | All Editions |
| Jansatta | Hindi | All Editions |
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Necessity of Dhanuka Agritech Limited Buyback
The Buy Back is being proposed by the Company to return surplus cash to the shareholders of the Company for the following reasons:
i. The Buy Back will help the Company to return surplus cash to its members holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
ii. The Buy Back, which is being implemented through the Tender Offer route as prescribed under the Buy Back Regulations, would involve allocation of higher number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the Small Shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as “Small Shareholder”;
iii. The Buy Back may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
iv. The Buy Back gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buy Back Offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buy Back Offer, without additional investment;
v. Optimizes the capital structure.
Impact of Dhanuka Agritech Limited Buyback on the Company
The Buy Back is not likely to cause any material impact on the profitability / earnings of the Company, except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
The Buy Back will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations.
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2020 are as under:
| Parameters (based on audited standalone financial statements for year ended March 31, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | 706.74 | 606.74 |
| Return on Net worth (%) | 20.02 | 23.32 |
| Earnings Per Share (Rs) | 29.73 | 30.37 |
| Book Value per Share (Rs) | 148.54 | 130.26 |
| Price / Earnings Ratio (P/E)** | 25.83 | 25.29 |
| Total Debt / Equity Ratio | 0.01 | 0.01 |
Basis of Calculating Dhanuka Agritech Buyback Price
The Buy Back Price of Rs. 1,000/- (Rupees One Thousand only) per Equity Share has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average prices of the Equity Shares on NSE and BSE, where the Equity Shares are listed, book value of Shares, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buy Back on the earnings per share.
The Buyback Price represents
premium of 22.93% and 22.90% over the closing price of the Equity Shares on BSE and NSE respectively, as on July 17, 2020 being the trading day prior to the date on which the Company intimated the Stock Exchanges of the date of the Board Meeting, wherein the proposal of the Buy Back was considered.
premium of 32.78% and 32.80% over the average of the daily closing price of Equity Share of the Company quoted on the BSE and NSE respectively, during the two weeks preceding the Buy Back Committee meeting held on September 16, 2020 to determine final terms and conditions of Buy Back.
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Source of Funds for the Buyback
Assuming full Acceptance, the funds that would be utilized by the Company for the purpose of the Buy Back of 10,00,000 (Ten Lakhs) Equity Shares at the Buy Back Price would be Rs. 100 Crores (Rupees One Hundred Crores only), excluding Transaction Costs.
The funds for Buy Back will be paid out of the Company’s current balances of cash and cash equivalents and other current investments and/or internal accruals of the Company (and not from any borrowed funds).
The Buy Back shall be made out of the free reserves of the Company as at March 31, 2020 (the last audited financial statements available as on the date of Board Meeting recommending the proposal of the Buy Back). The Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buy Back to the capital redemption reserve account and the details of such transfer shall be disclosed in its subsequent audited balance sheet and annual report(s).
The funds for the Buy Back will be sourced from internal accruals of the Company and borrowed funds will not be used for the purpose of Buy Back. However, if required, the Company may borrow funds in the ordinary course of its business.
Dhanuka Agritech Limited – Manager to the Buyback
| EMKAY GLOBAL FINANCIAL SERVICES LIMITED Contact Person: Mr. Deepak Yadav/ Mr. Sagar Bhatia Regd. Off.: 7th Floor, The Ruby, Senapati Bapat Marg, Dadar-West, Mumbai-400028, Maharashtra Tel. No.: +91 22 66121212 Fax No.: +91 22 66121355 Email id: dhanuka.buyback@emkayglobal.com Website: www.emkayglobal.com SEBI Regn. No.: INM000011229 Validity Period : Permanent |
Dhanuka Agritech Limited – Registrar to the Buyback
|
Cameo Corporate Services Limited
Subramanian Building, 1 Club House Road, Chennai – 600 002, Tamil Nadu, India Tel No.: +91 44 4002 0700 / 0710 / 2846 0390; Fax No.: +91 44 2846 0129; Website: www.cameoindia.com Email: priya@cameoindia.com Investor grievance e-mail: investor@cameoindia.com Contact Person: Ms.Sreepriya K SEBI Registration No.: INR000003753 |
Dhanuka Agritech Limited Contact Details
| Company Contact Details |
| LINK INTIME INDIA PRIVATE LIMITED Contact Person: Mr. Sumeet Deshpande Regd. Off.: C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai – 400 083 Tel No.: +91 22 4918 6200 Fax No.: +91 22 4918 6195 Email id.: dhanuka.buyback2020@linkintime.co.in Website: www.linkintime.co.in SEBI Regn. No.: INR000004058 Validity Period: Permanent |
Dhanuka Agritech Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Dhanuka Agritech Ltd – Public Announcement
FAQs of Dhanuka Agritech Buyback
What is the Dhanuka Agritech Buyback Period?
Dhanuka Agritech Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. OCTOBER 20, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NOVEMBER 02, 2020.
What type of buyback is Dhanuka Agritech Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the Dhanuka Agritech Buyback Offer?
Dhanuka Agritech Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 10,00,000 Fully paid up Equity shares, adhering to the buyback price.
When Dhanuka Agritech Buyback offer will start?
As per the released schedule, the Dhanuka Agritech Buyback offer will start on OCTOBER 20, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Dhanuka Agritech Buyback at all times, we ensure you have access to the right data.
When is the closing date of Dhanuka Agritech Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Dhanuka Agritech Buyback. The buyback would close on NOVEMBER 02, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Dhanuka Agritech Buyback?
The amount at which the shares are taken back by the company is referred to as Dhanuka Agritech Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.1000, the price paid to each eligible shareholder.
What is the record date for Dhanuka Agritech Buyback offer?
Record date of Dhanuka Agritech Buyback is September 28, 2020. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Dhanuka Agritech Buyback?
Dhanuka Agritech Buyback Size is Rs.100 CRORES and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for Dhanuka Agritech Buyback?
Objective of the Dhanuka Agritech Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to Dhanuka Agritech Buyback offer?
The designated registrar of Dhanuka Agritech Buyback is Cameo Corporate Services Limited
. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address and more.
Who is the Manager to the Dhanuka Agritech Buyback offer?
Manager to the Dhanuka Agritech Buyback is EMKAY GLOBAL FINANCIAL SERVICES LIMITED. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check Dhanuka Agritech buyback acceptance ratio?
Acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buyback and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find Dhanuka Agritech Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the Dhanuka Agritech Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Dhanuka Agritech Buyback Dates.
What can be the Impact of Dhanuka Agritech Buyback on the Company?
The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on Dhanuka Agritech Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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