According to reports from CNBC TV18, Dhanuka Agritech Ltd. has approved a ₹70 crore share buyback of up to 5,00,000 fully paid-up equity shares, representing 1.11% of its total paid-up equity share capital. The board has set the buyback price at ₹1,400 per share, which represents a 30% premium to Monday's closing price. The company's promoters and promoter group will participate in the buyback program, with May 29 fixed as the record date to determine shareholder eligibility.
As reported by CNBC TV18, Dhanuka Agritech delivered robust financial results for the March quarter. The company reported net profit growth of 30% to ₹98 crore compared to ₹76 crore in the previous year, while revenue increased by 9% year-on-year to ₹483 crore. EBITDA grew by 14% on a year-on-year basis, with margins expanding by 100 basis points to 25.7% from the previous year's 24.7%.
According to CNBC TV18, shares of Dhanuka Agritech surged as much as 10% on Tuesday, May 19 in response to the buyback announcement and Q4 results. The stock is currently trading 7.2% higher at ₹1,163.3 and has gained 15% in the last one month. The company's stock has nearly turned positive on a year-to-date basis following the positive market response. As per latest market data, the stock has shown remarkable resilience amid broader market volatility.
As reported by CNBC TV18, this marks the sixth share buyback approved by Dhanuka Agritech over the last decade. The company previously conducted buybacks in 2017, 2019, 2020, 2022 and 2024. Most of the company's buybacks have been executed through the tender offer route with promoters participating in the programs.
