Dhampur Sugar Mills Ltd board approves buyback through tender offer

The Board of Directors of Dhampur Sugar Mills Limited (the "Company") at its meeting held today i.e., 3rd January 2024, has considered and approved the proposal for buyback of fully paid-up equity shares of the Company having a face value of Rs. 10 (Rupee Ten Only) ("Equity Shares") from all shareholders / beneficial owners of the Equity Shares of the Company, including promoters and members of the promoter group, as on record date, as mentioned below, on a proportionate basis, through the "tender offer" route, using mechanism for acquisition of shares through Stock Exchange.

The buyback price is fixed as Rs. 300 per equity share and the buyback offer size is Rs. 30,00,00,000 (Rupees Thirty Crores only) excluding expenses incurred or to be incurred for the Buyback viz. brokerage cost, fees, turnover charges, applicable taxes such as, Buyback tax, securities transaction tax, goods and services tax (if any), stamp duty, printing and dispatch expenses, if any, filing fees payable to the Securities and Exchange Board of India ("SEBI") any other Appropriate Authorities, Stock Exchange charges, advisor/legal fees, public announcement publication expenses and other incidental and related expenses and charges.

The Buyback Offer Size represents 2.89% and 2.88% of the aggregate of the Company's fully paid-up equity capital and free reserves based on both latest standalone and consolidated audited financial statements of the Company, respectively, for the financial year ended on 31st March, 2023, which is less than 10% of the aggregate of the total paid-up capital and free reserves of the Company in accordance with Regulation 4(i) read with provision to Regulation 5(i)(b) of the SEBI Buyback Regulations. Since the proposed buyback is of less than 10% of the total paid up equity capital and free reserves of the Company, the approval of shareholders is not required.

The Board has constituted a committee called "Buyback Committee" and delegated its powers to do such acts, deeds, matters, and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in relation to the proposed Buyback. The Board has appointed Ms. Aparna Goel, Company Secretary as the Compliance Officer for the purposes of the proposed Buyback.

The Board has appointed Centrum Capital Limited, as the merchant banker to the Buyback or manager to the Buyback in accordance with the Companies Act, as amended and Buyback Regulations.

The Board of Directors of the Company has fixed Wednesday, 17th January, 2024, as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the Buyback.

Shares of Dhampur Sugar Mills Limited was last trading in BSE at Rs. 269.20 as compared to the previous close of Rs. 265.60. The total number of shares traded during the day was 52474 in over 1352 trades.

The stock hit an intraday high of Rs. 271.35 and intraday low of 266.50. The net turnover during the day was Rs. 14107781.00.

Source : Equity Bulls

Keywords

DhampurSugarMills INE041A01016 Buyback TenderOffer INR300