Dhanuka Agritech Limited Buyback Offer 2018
Dhanuka Agritech Limited manufactures a wide range of agro-chemicals like herbicides, insecticides, fungicides, miticides, plant growth regulators in various forms – liquid, dust, powder, and granules.
The Company has a pan-India presence through its marketing offices in all major states in India, with a network of more than 7,000 distributors/ dealers selling to over 75,000 retailers across India and reaching out to more than 10 million farmers. The Company has technical tie-ups with 4 American, 5 Japanese & 2 European Companies.
Dhanuka’s target customers are primarily farmers. Growth drivers are the intensive marketing network penetrating even the interiors of India, increased farm income, enhanced awareness about the cost-benefit tradeoff of agro-chemicals, highly diverse product range with a solution for almost all problems in all crops, innovative marketing strategies, and international technical tie-ups. The Company keeps adding new products every year through its collaborations and is continuously on the lookout to bring the latest technology to Indian Farmers.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jan 02 2019 |
| Buyback Opening Date: | Jan 25 2019 |
| Buyback Closing Date: | Feb 07 2019 |
| Buyback Offer Amount: | ₹ 82.50 Cr |
| Date of Board Meeting approving the proposal: | Nov 14 2018 |
| Date of Public Announcement: | Nov 14 2018 |
| Buyback Offer Size: | 13.12% |
| Buyback Number of Shares: | 1,500,000 |
| FV: | 2 |
| Buyback Price: | ₹ 550 Per Equity Share |
Details of Buyback:
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| (i) Amount Invested in Buyback | 1,43,500 | 1,43,500 | 1,43,500 | 1,43,500 |
| (ii) No. of Shares buyback | 115 | 175 | 262 | 350 |
| (iii) BuyBack Profit | 16,100 | 24,500 | 36,680 | 49,000 |
| (iv) Profit(%) | 11.21% | 17.07% | 25.56% | 34.16% |
Recommendation:
Company Contact Details:
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Dear MW,
how was so much difference…? as we accepting ratio as under according to various mail…
ER- around 10-20 or 10/100 share
and finally AR comes around 75%…….
Is our calculation went wrong…
Final Analysis of Dhanuka Agritech Limited Buyback Offer 2018 ( Return Analysis)
1. Buyback Announcement date: 14.11.2018—– Share Price was 410.
2. 350 Shares bought at Rs. 410 means an investment of 1,43,500.
3. Retail Acceptance Ratio was 75.85 %. i.e. out of 350 shares, 265 shares have been buyback by the company. Profit on Accepted Shares= 37,100
4. The final Accepted Shares will be taken back on 14.02.2019. On 14.02.2019, the share price is 401. So a loss of 765 Per Shares.
5. Overall we can say a profit of 36,335 on an investment of 1,43,500 in 2 months.
Final Post Buyback Announcement
https://www.sebi.gov.in/filings/buybacks/feb-2019/dhanuka-agritech-limited-post-buyback-public-announcement_42105.html
75 out of 100.
Good returns to retailers.
Tendered shares in individual category is 972709 as on 7th Feb 2019 6.30PM.
AR is around 23.13% minimum as per numbers (225000/972709).
Tendered shares in individual category is 632421.
AR is around 35.5% as per numbers.
As off 01st Feb 2019 by 7.30PM, Bidding Subscription details:-
Reserved for Retail Category: 2,25,000
Tendered in Individual Category : 4,37,592 (All Individuals Category)
Acceptance Ratio : 51.42% nearly Minimum.
Letter of Offer for Dhanuka Agritech
https://www.bseindia.com/xml-data/corpfiling/AttachLive/3532208d-085e-4ab2-9793-06b9493f9490.pdf
Entitlement:
Reserved Category for Small Shareholders = 7 Equity Shares for every 67 Equity Shares held on the Record Date i.e. 02-01-2019
General Category for other Shareholders = 5 Equity Shares for every 184 Equity Shares held on the Record date i.e. 02-01-2019
Date
Buyback dates 25th Jan to 07th Feb.
Entitled 10/100.
Dhanuka is buyback hugely popular. 27,635 as of 31st Dec and now 53,640 Small Shareholders in the Letter of Offer.
BUY-BACK OPENS ON – FRIDAY, JANUARY 25, 2019
BUY-BACK CLOSES ON – THURSDAY, FEBRUARY 07, 2019
LAST DATE/TIME OF RECEIPT OF COMPLETED APPLICATIONS, FORMS AND OTHER SPECIFIED DOCUMENTS INCLUDING PHYSICAL SHARE CERTIFICATES BY THE REGISTRAR TO BUY-BACK: SATURDAY, FEBRUARY 09, 2019 BY 5.00 P.M.
Hi market wizard,
I bought shares of Dhanuka on 28th December, 29th and 30th were holidays, 1st is the exdate, am I eligible for the buyback considering that it takes T+2 days for stock to get into demat?
Yes, you will be eligible.
Hi market wizard, please let me know should I buy it today for buyback??
Current price is around 470 rs…
Any idea about acceptance ratio?
do not buy now.
Ya I didn’t bought… today it fell 5 percent
Effect of record date announcement on stock
Record Date Announced as 02.01.2019
https://www.bseindia.com/xml-data/corpfiling/AttachLive/3577e1b4-5090-408a-b43e-688a00af8797.pdf
Board meeting is scheduled for December 20 to consider the final buy-back price, fixation of the record date and other related matters in respect of the proposed buy-back of equity shares of the company.
Wizard sir,
What is your view on Tata investment Corp.
Good buy.
Please suggest about tata investment buyback buy or avoid..
Tata Investment Corp. a TATA Enterprise is going for 45L equity shares buyback @ Rs. 1000/- each. Announcement made yesterday.
Aur koi new company ka accha wala buy back update h kya sir ji
Please suggest for dhanuka agri buy or avoid for buyback purpose..
Just wait for the record date to announce. It might be available below 400 as a market condition is choppy which would be a good entry price considering low Acceptance Ratio. We need to understand that the condition of the economy is not sound. The way Govt is coming up with so many buybacks, OFS, asking Special Dividends from Power PSUs, intervening RBI to put liquidity in the system shows all is not good. So better wait and buy at the right price. Had we in 2017 I would have blindly said to buy at CMP but not anymore. Hope u understand.
Thank you sir for your valuable reply..
US TIME HI MENE BUY KIYA THA
AGAIN THANKS VERY MUCH
Thanks for the comment.
APNE. LT ME COMENT DIYA THA
THANKS INVESTER ZONE
Mene mera profit book kar liya h
MENE 387 per 815 SHARE buy kiye . &. 436 PER SELL aaj sare sell kar diye my profit is =39000
NOW TRAD FOR 443
Record Date kya h Sir ji
Not announced yet.
As on 30 Sep
Retail investors (holding below 2 lacs) — 40,29,423
Buyback shares reserved for retailers — 2,25,000
Entitlement ratio (as per 30 sep holding) — 5.65% Approx.
Buyback gain from CMP – 34.5%
** Actual Entitlement ratio & Acceptance ratio will be different as per record date & shares tendered by retailers
Quarterly numbers shown by Dhanuka Agritech are good.
Particulars ——–Q2FY19 ———Q2FY18——— %Change YoY
Revenue(Cr)——– 385——– 349 ——– 10.1%
Profit(Cr) —– 52——– 55 ——– 5.7%
EBITDA(Cr) ——-79 ——– 77 ——– 2.52%
The Company has also announced a Buyback at Rs. 550 ( an upside of 34%) for the maximum amount of 84 Cr subject to the approval of Shareholders. The maximum shares buyback would be 15 Lakh and out of which 2.25 lakh would be reserved for Retail Investors.
Individual Shareholders holding nominal share capital upto r,s 2 Lakhs is around 40 lakhs
Does that mean that all of them will come under retail category?
And sorry to say but i disagree with the approximation of acceptance ratio
according to me acceptance ratio should be around 40%+
in jan 2017 dhanuka had a buyback of 17% size and at that time shareholders with nominal share capital below 2 lakhs were around 36 lakhs
yet the final acceptance ratio was 57%
This time shareholders below 2 lakh are 40 lakh and buyback size is around 14&
so acceptance should be atleast 40%
please correct me if I am wrong
thanks
You are correct in the calculation.
No. This figure shows the list of shareholders who hold share between 0 to 1 lakh( 2lakh/2(fv)).
But in the case of Dhanuka Agritech, the Retail investors would be who hold share between 0 to 350.