Dhanuka Agritech Limited Buyback 2024

1. Company Overview: Dhanuka Agritech Limited is a leading agrochemical company in India, engaged in the manufacturing and marketing of a wide range of agrochemicals. Established in 1980, the company has built a strong reputation in the agricultural sector for its innovative solutions and quality products.

2. Products and Services: The company offers an extensive portfolio of products, including herbicides, insecticides, fungicides, plant growth regulators, and biostimulants. These products are designed to enhance crop productivity and protect crops from pests and diseases, catering to the diverse needs of farmers.

3. Recent Achievements: Dhanuka Agritech has received several awards for its contributions to the agricultural sector. Recently, the company was recognized for its innovative product development and sustainable agricultural practices. It continues to invest in research and development to bring new and effective solutions to the market.

4. Market Reach: The company has a robust distribution network that spans across India, reaching over 10 million farmers through more than 6,500 distributors and dealers. Dhanuka Agritech also exports its products to various countries, expanding its global footprint and contributing to agricultural advancements worldwide.

5. Manufacturing Facilities: Dhanuka Agritech operates state-of-the-art manufacturing facilities located in Gurgaon, Sanand, Udhampur, and Keshwana. These facilities are equipped with advanced technology and adhere to strict quality control measures to ensure the production of high-quality agrochemical products.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Aug 16 2024
Buyback Opening Date: Aug 22 2024
Buyback Closing Date: Aug 28 2024
Buyback Offer Amount: ₹ 100 Cr.
Date of Board Meeting approving the proposal: Aug 02 2024
Date of Public Announcement: Aug 02 2024
Buyback Offer Size: 1.10%
Buyback Number of Shares: 5,00,000
FV: 2
Buyback Price: ₹ 2000 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 5,00,000 (Five Lakhs) equity shares of the Company (representing 1.10% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 2,000 /- (Rupees Two Thousand only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 100,00,00,000/- (Rupees One Hundred Crores Only).

Salient financial parameters:

Particulars (In cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 1,120 1,387 1,478 1,700 1,759
Expenses + 947 1,118 1,214 1,421 1,431
Operating Profit 174 269 264 279 328
OPM % 15% 19% 18% 16% 19%
Other Income + 25 34 34 45 35
Interest 2 3 3 3 3
Depreciation 16 15 16 18 41
Profit before tax 181 285 278 303 319
Tax % 22% 26% 25% 23% 25%
Net Profit + 141 211 209 234 239
EPS in Rs 29.71 45.21 44.85 51.23 52.46
Dividend Payout % 40% 4% 31% 4% 27%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Dhanuka Agritech Limited in Demat or physical form as on the record date [16-08-2024].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [22-08-2024] by selling your shares through your broker on NSE or BSE.
3. Then on [04-09-2024], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 100 Shares at CPM of Rs. 1821 (2,00,000/2000)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 182100 182100 182100 182100
No. of Shares Buyback 33 50 75 100
Buyback Profit 5907 8950 13425 17900
Profit% 3.24% 4.91% 7.37% 9.83%

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