The board of directors of Dhanuka Agritech Ltd. has officially approved a ₹70 crore share buyback programme involving up to 5 lakh equity shares at ₹1,400 per share through the tender offer route. The buyback window opened on June 4, 2026 and remains open until June 10, 2026, with the settlement process scheduled to be completed by June 17, 2026. The agrochemical company plans to repurchase up to 5 lakh fully paid-up equity shares through the tender offer route, representing 1.11% of its paid-up equity share capital. This strategic move was formally approved by the company's Board of Directors during a meeting held on May 19, 2026, as part of the company's strategy to enhance shareholder value and optimize its capital structure. The company has appointed Sundae Capital Advisors Private Limited as the Merchant Banker and Bigshare Services Private Limited as the Registrar to the buyback.
The record date for determining shareholder eligibility was fixed at Friday, May 29, 2026. As per the letter of offer, shareholders in the small shareholder category will be entitled to tender one share for every 15 shares held on the record date, while shareholders in the general category will be entitled to tender five shares for every 518 shares held. The company has reserved a portion for small shareholders, with the actual number being the higher of 15% of the total buyback size or the calculated entitlement. The aggregate buyback size of ₹70 crore represents 4.20% of the company's aggregate paid-up equity capital and free reserves as of March 31, 2026. The buyback will be executed through the tender offer route, adhering to the SEBI Buyback Regulations and utilizing the stock exchange mechanism. Eligible shareholders can tender their shares through their respective brokers during the specified period.
The company had announced the buyback proposal alongside its March-quarter results in May. Dhanuka Agritech reported a net profit of ₹98 crore for the quarter, up 30% from ₹76 crore a year earlier, while revenue increased 9% year-on-year to ₹483 crore. EBITDA rose 14%, with margins expanding to 25.7% from 24.7% a year ago. Most of Dhanuka's previous buybacks have been carried out through the tender offer route, with promoter participation. The funds for this buyback will be sourced from the company's free reserves, and the company anticipates that the buyback will improve its return on net worth and earnings per share metrics. Post buyback, the company's net worth is projected to decrease, while key financial ratios such as Earnings Per Share and Return on Net Worth are expected to improve.
Shares of Dhanuka Agritech ended Tuesday's session at ₹1,099 on the NSE, up 1.3%. At the buyback price of ₹1,400 per share, the offer implies a premium of roughly 27% to the closing market price. The latest offer comes at a time when the company continues to benefit from steady demand in the crop protection segment and improving profitability. The buyback is aimed at returning surplus cash to shareholders, enhancing return on equity, and optimizing the company's capital structure. The buyback is open to all eligible shareholders, including promoters, on a proportionate basis as of the record date, and is subject to statutory and regulatory approvals.
