Dhampur Sugar Mills Limited Buyback 2024
1. Since 1933, we have established ourselves as a key player in India’s organized sugar business with a crushing capacity of 23,500 tonnes per day.
2. We have expanded our portfolio into segments like green power, ethanol, alcohol and industrial chemicals
3. Extensive and constant R&D efforts have helped us make our commodities affordable and accessible for the community.
4. We are one of the oldest integrated sugar companies in India. Currently, we have two production facilities in Uttar Pradesh – Dhampur and Rajpura – with an aggregate manufacturing capacity of 23,500 TCD.
5. Our distillery has a capacity of 2,50,000 litres a day, with 130 KLPD under implementation, and our power segment generates 121 megawatts
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jan 17 2024 |
| Buyback Opening Date: | Jan 23 2024 |
| Buyback Closing Date: | Jan 30 2024 |
| Buyback Offer Amount: | ₹ 30 Cr |
| Date of Board Meeting approving the proposal: | Jan 03 2024 |
| Date of Public Announcement: | Jan 03 2024 |
| Buyback Offer Size: | 1.50% |
| Buyback Number of Shares: | 10,00,000 |
| Price Type: | Tender Offer |
| FV: | 10 |
| Buyback Price: | ₹ 300 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (In Cr) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales + | 2,892 | 3,484 | 2,158 | 1,904 | 2,460 |
| Expenses + | 2,433 | 3,132 | 1,879 | 1,613 | 2,152 |
| Operating Profit | 460 | 353 | 279 | 292 | 308 |
| OPM % | 16% | 10% | 13% | 15% | 12% |
| Other Income + | 18 | 31 | 96 | 10 | 11 |
| Interest | 90 | 101 | 39 | 50 | 44 |
| Depreciation | 70 | 76 | 51 | 50 | 52 |
| Profit before tax | 317 | 207 | 284 | 202 | 223 |
| Tax % | 21% | -4% | 19% | 29% | 29% |
| Net Profit + | 251 | 216 | 229 | 144 | 158 |
| EPS in Rs | 37.81 | 32.61 | 34.52 | 21.69 | 23.72 |
|
Dividend Payout %
|
17% | 18% | 17% | 28% | 25% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,79,154 | 1,79,154 | 1,79,154 | 1,79,154 |
| No. of Shares Buyback | 219 | 333 | 499 | 666 |
| Buyback Profit | 6,789 | 10,323 | 15,469 | 20,646 |
| Profit% | 3.79% | 5.76% | 8.63% | 11.52% |
Recommendation:
44 Comments
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62/665 is the AR in my case. Loss making.
I had expected AR to be around 8%, so it is a bit higher than expected.
Some recent buybacks like Elegant, Dhampur and probably Chambal and Kaveri will result in losses for those looking for easy money. Hopefully, people will learn their lesson and due proper due diligence before investing in future.
Thank you very much for your views n kind words. God bless you.
Without loss, I came out successfully.
Nice to know SRK Ji. I sold @267.2 and escaped without much loss.
Dhampur Sugar Buy Back Jan 2024:
Actual ER : 31 out of 1489 shares (Actual Small Share holders will be those holding 761 or less shares. )
Actual ER for Small Share Holders : 2.08 %
As expected, there was not a substantial difference in ER between retail and general categories.
Hi Ankit bhai, can we connect?
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@AYUSH JINDAL,
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Dhampur : This is one of the lowest ER I have seen. For me they are taking 13 shares out of 650. It seems this buyback will be a loss making deal.
Already share price is down due to market downfall.
Why did you buy shares after saying it was a COMPLETE NO for you ?
This buyback helps those existing shareholders who bought at much lower prices earlier but buying just for the buyback was always risky.
You are right. … my opinion changed further as I wanted to do test the water with Buyback as this is my first buyback.
But 2 percent ER is too less.
Thanks for your inputs. Need to learn a lot.
This one is going to be my first and only buy back loss in the recent times.Hence, not concerned much.
I bought this stock at a price of 278.50. Now, I’m confused about whether I should opt for a buyback or sell and avoid this stock.
It’s already around 255. Better to opt for buyback and say for some period for unaccepted shares or Averaging post buyback.
Thanks, bro. I will do as you suggested.
Dhampur : This is one of the lowest ER I have seen. For me they are taking 13 shares out of 650. It seems this buyback will be a loss making deal.
Already share price is down due to market downfall.
Dhampur : Buyback Price 300. CMP : 270
Only ten percent gain that too for an equity of 1.50 percent only. Brokerage and expenses will be more than the profit. FOR ME IT IS A COMPLETE NO.
Same view so avoiding this buyback.
Rohit ji
It would be quick 10% on some shares
AR should be higher as less people are going to participate
And this is currently fairly valued
11pe, shouldn’t fall post buyback
Sugar stocks generally trade with low P/E. According to trendylyne data, Dhampur Sugar’s P/E has been lower than current P/E 80% of the time since 2014.
Buy 675 shares at 269.4 in previous week today all sold at 263.8.
Not expected such but hoping good for
Next buyback
Expected Minimum Entitlement Ratio for Small Shareholders (below Rs 2 lakhs):
Dhampur Sugar Jan 2024: 2.25 %
Kaveri Seeds Jan 2024: 30.04 %
Chambal Fertilisers Jan 2024: 11.22 %
Bajaj Auto Jan 2024 : 15 %
Dhampur : Buyback Price 300. CMP : 270
Only 10% gain. Why we shud go for it?
True. You shouldn’t. But I will, so that I can get a fair AR, and hold the rest for long term.
Yes, I agree with you and I am in with full quota.
Buyback size small, CMP and buyback price margin small, so avoid
The big difference with GNFC is that GNFC buyback was 5.45% of the equity base and this is 1.5%. Shareholding of retail shareholders is also quite high, so there may not be a big difference in ER between retail and general category.
That said, Dhampur Sugar is still reasonably priced ( I own some from Feb last year), and if one already wants to own the stock, the buyback is an additional reason to buy it. However, one should be realistic about the AR expectation if one is buying it purely as a buyback trade. If the share price is close to the buyback price at the time of tendering, AR wil be high, but if the stock falls from here, AR would be a smaller multiple of ER.
Dhampur : Buyback Price 300. CMP : 270
Only ten percent gain that too for an equity of 1.50 percent only. Brokerage and expenses will be more than the profit. FOR ME IT IS A COMPLETE NO.
Buyback price – Rs. 300
Buyback size – Thirty Crores rupees (1.5063% of the total number of Equity Shares)
Record date – 17th January, 2024
Very less amount. ER and AR will be very low.
Disappointed. Sold my holdings today.
sold my holding
Nothing seems very exciting about this buyback. What is the view of members ?
Personally, I think Dhampur is a reasonably valued company. I had owned it earlier, exited for a profit, and switched to Uttam Sugar.
I’ll be looking to buy & tender the full quantity. AR should be high because price is low. I’ll be happy to hold onto whatever is not accepted, just like I did for GNFC.
Bajaj Auto Board meeting on 8th January to consider share buyback.
Last time was open market by Bajaj Auto for ₹2500/crore .Price ceiling was ₹4600/.So no commitment until the decision is known this time.
300 rs tende offer
I am expecting Rs.100 Crore buyback – Tender offer – at around Rs.350. Lets see.
10 Crore. Rs.300 Record date 17th Jan
30 Crore. My mistake
Acceptation ratio kitna hai. Whether open or tender offer.
Abhi kal meeting hai .buyback karana hai ya nahi decide hoga .tender ya open decide hoga phir …………..long way to go for acceptance ratio .
Wait till then