Dhanuka Agritech Buyback Review, Offer Details, Price, Dates, Size & more

In 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 – https://top10stockbroker.com/share-price/dhanuka-agritech-share-price/

Dhanuka Agritech Limited Buyback Details

Buyback TypeTender Offer
Opening Date[●]
Closing Date[●]
Buyback Offer AmountRs.100 CRORES
Buyback No. of Shares10,00,000
Face ValueRs.2
Date of Buyback ApprovalJuly 22, 2020
Date of Public AnnouncementSeptember 16, 2020
Buy Back PriceRs.1000
Buy Back Premium22.93%
Date of Board MeetingJuly 22, 2020

Dhanuka Agritech Buyback Opening and Closing Date

The starting and closing date of this buyback is from [●] to [●].

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 RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%2001000200000439005.62%
40%40010004000008780011.25%
60%600100060000013170016.87%
80%800100080000017560022.50%
100%10001000100000021950028.12%

Profit is calculated from Sep 23, 2020 share price i.e. Rs.780.5 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.43900 as profit amount & 5.62% 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.131700 @ 16.87% profit percentage.


Dhanuka Agritech Limited Buyback Overview

Dhanuka Agritech Buyback

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.


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]

ParticularsJune 30, 2020 (Unaudited)12 Months period ended March 31
(Audited)
2020202020192018
Total Income381.211145.161027.04978.67
Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items)308.56946.71859.84796.58
Interest0.271.560.890.87
Depreciation3.1616.3612.3514.21
Profit before tax69.22180.53153.96167.01
Provision for tax
(including Deferred Tax)
17.4339.1841.3840.83
Profit /(Loss) after tax51.79141.35112.58126.18
Equity Share Capital9.529.52*9.529.82
Reserve and SurplusNot available691.17625.46618.90
NetworthNot available706.63641.27632.41
Total DebtNAnilnil*nil

Dhanuka Agritech Limited Buyback Dates

Date of Board Meeting approving the BuybackJuly 22, 2020
Date of publication of Public Announcement for Buyback[●]
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersSeptember 28, 2020
Buyback Opening date[●]
Buyback Closing date[●]
Last Date of verification of Tender Forms by the Registrar[●]
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar[●]
*Last date of Settlement of Bids on the BSE Limited[●]
Last date of return of unaccepted Equity Shares by BSE Limited[●]
*Last date of Extinguishment of Equity Shares[●]

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:

PublicationLanguageEdition
Financial ExpressEnglishAll Editions
JansattaHindiAll Editions

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-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in crores)706.74606.74
Return on Net worth (%)20.0223.32
Earnings Per Share (Rs)29.7330.37
Book Value per Share (Rs)148.54130.26
Price / Earnings Ratio (P/E)**25.8325.29
Total Debt / Equity Ratio0.010.01

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.


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 / Draft Letter of Offer [Download]

News 2 – Dhanuka Agritech Ltd – Public Announcement


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