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Dhanuka Agritech Ltd.'s buyback offer for shares worth Rs 85 crore will open today, December 26, for investors and will close on January 6, 2023.

The company has proposed to buy back 10 lakh shares of a face value of Rs 2 each at Rs 850 apiece for an aggregate amount of Rs 85 crore through a tender offer process.

Eligible shareholders of Dhanuka Agritech, who held the shares of the company in their Demat accounts as on the record date i.e. November 18, 2022, can tender their shares online if they want to participate in the buyback offer.

The entitlement ratio for the reserved category of small shareholders is 4 equity shares out of every 33 fully paid-up equity shares held on the record date. For the general category or all other eligible shareholders, it is 3 equity shares out of every 160 fully paid-up equity shares held on the record date.

The entitlement ratio is an indication of the minimum number of shares that will definitely be accepted in the buyback offer by the company.

The shareholders would have to fill out the letter of offer/tender form sent to their registered email IDs to tender the shares. In the tender form, there would be 3 main fields -- the number of shares you hold of the company as on the record date, the number of shares eligible for the buyback, and the number of shares being applied for the buyback.

Shareholders need to enter the number of shares they own and the number they wish to tender. Then, a softcopy of this tender form will have to be sent in an email to the service provider of the shareholders’ Demat account.

Alternatively, shareholders can also access their Demat account online. There they should see the option of applying for the buyback offer that is open. They can fill in the tender form and submit it there.

Once the tender form is submitted/received, the shares booked for the offer would be debited from the Demat account and transferred to the registrar and transfer agent (RTA).

Any share tender offer made over and above the acceptance ratio would be credited back to the customer’s Demat account.

The acceptance ratio is the number of shares accepted in a buyback offer as compared to the total number of shares tendered. The ratio is calculated after the buyback window closes. It depends on the buyback size and the actual quantity tendered during the buyback.

Shares of Dhanuka Agritech are trading at Rs 667.90, up 0.40 percent.

(Edited by : Rukmani Krishna)

First Published:Dec 26, 2022 10:55 AM IST