Buyback Alert: Agrochem player approves sixth repurchase plan at 30% premium; Details here

Shares of Dhanuka Agritech Ltd. surged as much as 10% on Tuesday, May 19, in response to the company’s fourth quarter results and the board approving a buyback of equity shares.Dhanuka’s board has approved the buyback of up to 5,00,000 fully paid-up equity shares of the company, which amounts to 1.11% of its total paid-up equity share capital.

Price of the share buyback has been fixed as ₹1,400 per share, which is a premium of 30% to Monday’s closing price.
The company’s promoters and promoter group will be participating in the buyback, Dhanuka’s exchange filing stated. May 29 has been fixed as the record date to determine the eligibility of the shareholders who can participate in the share buyback program.
Dhanuka Agri will spend a sum of ₹70 crore to execute this share buyback.

Dhanuka Buyback History

This is the sixth share buyback that Dhanuka Agri has approved over the last decade. It previously carried out buybacks in 2017, 2019, 2020, 2022 and 2024.Most of the buybacks carried out by the company were done through the tender offer route with promoters participating in them as well.

Dhanuka Agri In Q4

For the March quarter, Dhanuka Agritech reported a 30% growth in its net profit to ₹98 crore from ₹76 crore last year, while its revenue grew by 9% on a year-on-year basis to ₹483 crore.Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 14% on a year-on-year basis, while margins expanded by 100 basis points to 25.7% to 24.7% from last year.

Shares of Dhanuka Agritech had gained as much as 10% after the results and buyback announcement and are currently trading 7.2% higher at ₹1,163.3. The stock is up 15% in the last one month and has nearly turned positive on a year-to-date basis as well.