Dwarikesh Sugar Industries Ltd announces buy back of equity shares

The Board of Directors of Dwarikesh Sugar Industries Ltd. approved a buyback offer of 30,00,000 fully paid-up equity shares of face value Re. 1 (Rupee one only) each by the company during its meeting held on the 8th March, 2024. This buyback represents 1.59% of the total paid-up Equity Share Capital of the Company at a price of Rs. 105 (Rupees one hundred and five only) per Equity Share. The aggregate consideration of this proposed buyback is up to Rs. 31.50 crores. This aggregate consideration represents 4.49% of the aggregate of the fully paid-up Equity Share capital and free reserves as per the latest audited financial statements of the Company as on March 31, 2023.

Key details of the buyback

- Number of shares: 30,00,000 (Thirty Lakh Shares)
- Face value per share: Re. 1 (Rupee One only)
- Buyback offer price: Rs. 105 per Equity Share
- Aggregate consideration: Up to Rs. 31,50,00,000/-
- Buyback size: 1.59% of the total paid-up Equity Share Capital
- Record date: 20th March 2024

The buyback will be conducted on a proportionate basis through a 'tender offer' mechanism. Shareholders holding shares as of the record date, i.e., 20th March, 2024, are eligible to participate. Shareholders will have the opportunity to tender a portion of their shares at the buyback offer price.

The Board of Directors approved this buyback offer as it is aligned with its commitment to enhance shareholder value and optimize its capital structure. The buyback will help the Company to distribute surplus funds to its shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall shareholder value.

The detailed terms and conditions of the buyback offer, including the procedures for tendering shares, will be provided in the offer document, which will be dispatched to eligible shareholders in due course.

Shares of Dwarikesh Sugar Industries Limited was last trading in BSE at Rs. 80.85 as compared to the previous close of Rs. 80.07. The total number of shares traded during the day was 215410 in over 1373 trades.

The stock hit an intraday high of Rs. 81.90 and intraday low of 80.40. The net turnover during the day was Rs. 17463796.00.

Source : Equity Bulls

Keywords

DwarikeshSugarIndustries INE366A01041 BuyBack EquityShares