08-Jan-2024
2 mins read
The shares of Dhampur Sugar Mills experienced a slight uptick following the company’s board’s approval of a buyback program. The plan involves repurchasing 10 lakh shares for Rs 300 each. This announcement led to a 1% increase in the company’s stock price, reaching Rs 271.9 per share on the Bombay Stock Exchange (BSE). However, the shares couldn’t maintain these gains and were trading at Rs 268.55, down by 0.59% from the previous day’s close.
The buyback, valued at around Rs 30 crore, represents a premium of 11.4% on the stock’s last closing price. This move by Dhampur Sugar Mills adheres to the required regulatory standards. The company has announced January 17 as the record date for determining the eligibility of shareholders to participate in the buyback. This process is critical to identify those eligible for the buyback, marking the company’s first initiative.
Company Details of Dhampur Sugar Mills Ltd
Established in 1933, Dhampur Sugar is a prominent entity in India’s sugar, chemical, and cogeneration sectors. The company stands out in the integrated processing of sugarcane, owning the nation’s largest capacity for sugarcane processing. Additionally, Dhampur Sugar is notable for having one of the highest capacities for ethanol production in proportion to its cane-crushing capabilities.
Headquartered in Delhi, Dhampur Sugar Mills enjoys a significant market presence, with its capitalisation nearing the Rs 2,000 crore mark. The sugar industry recently received a positive impetus following the government’s reversal of its earlier decision to prohibit the use of cane juice in ethanol production. This policy change has brought some respite to manufacturers like Dhampur Sugar.
Company Financials of Dhampur Sugar Mills Ltd (In Rs Crore)
For the fiscal year ending March 31, 2023, Dhampur Sugar Mills Ltd reported a revenue growth of 32.93%, along with a 9.69% increase in profit after tax (PAT) compared to the fiscal year ending March 31, 2022.
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 2,121.65 | 2,164.82 | 3,470.80 |
| Revenue | 2,889.50 | 2,173.62 | 2,245.03 |
| Profit After Tax | 157.99 | 144.03 | 198.62 |
| Net Worth | |||
| Reserves and Surplus | |||
| Total Borrowing |
Important Details of Dhampur Sugar Mills Ltd Buyback 2024
| Issue Period | January 23, 2024 – January 30, 2024 |
| Security Name | Dhampur Sugar Mills Ltd |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 1,000,000 (1.5 % of Total number of equity Shares) |
| Issue Size (Amount) | Rs 30.00 Crores |
| Buyback Price | Rs 300 per share |
| Face Value | Rs 10 per share |
| Listing At | BSE, NSE |
Dhampur Sugar Mills Buyback 2024 Issue Timetable
| Last Date to buy shares | 16-Jan-24 |
| Record Date | 17-Jan-24 |
| Offer Opens On | January 23, 2024 |
| Last Date for receipt of Tender Forms | January 30, 2024 |
| Offer Closes On * | January 30, 2024 |
| Finalisation of Buyback Acceptance | February 5, 2024 |
| Last Date for settlment of bids | February 6, 2024 |
| Last Date for Extinguishment of Shares | February 15, 2024 |
The Necessity of the Dhampur Sugar Mills Ltd Buyback
The buyback initiative is being undertaken for several key reasons. Firstly, it allows the Company to distribute excess cash to its equity shareholders, thereby boosting their overall returns. This buyback process is conducted through the tender offer route, as outlined in the SEBI Buyback Regulations. It includes a provision where a certain number of Equity Shares, based on entitlement or a minimum of 15% of the total shares to be repurchased, are set aside specifically for small shareholders. This approach is expected to benefit a significant number of public shareholders who fall under the category of “small shareholders” as defined by Regulation 2(i)(n) of the SEBI Buyback Regulations.
Moreover, the buyback is anticipated to enhance the return on equity by reducing the equity base, which will likely lead to an increase in shareholder value over the long term. Additionally, it allows shareholders to either participate in the buyback and receive cash in lieu of their Equity Shares or to not participate. Shareholders who choose not to participate may see an increase in their relative shareholding percentage post-buyback without additional investment.
Lead Managers for Dhampur Sugar Mills Ltd Buyback
The lead manager for Dhampur Sugar Mills Ltd Buyback is Centrum Capital Limited.
How to Apply for Dhampur Sugar Mills Ltd Buyback
Wait for the buyback to open for subscription, then click on this link to apply for the Dhampur Sugar Mills Ltd Buyback with Bigul https://www.bonanzaonline.com/.
How to Check Allotment Status for Dhampur Sugar Mills Ltd Buyback
The registrar for Dhampur Sugar Mills Ltd Buyback is Alankit Assignments Ltd. To check your allotment status; please click on this link http://ipo.alankit.com/
FAQs
- What is the Dhampur Sugar Mills Ltd Buyback 2024?
The Dhampur Sugar Mills Ltd Buyback 2024 is a program where the company plans to repurchase 10 lakh shares at Rs 300 each. This initiative is the company’s first buyback effort and is set to enhance shareholder value.
- When is the record date for the Dhampur Sugar Mills Buyback?
The Dhampur Sugar Mills Buyback’s record date is January 17, 2024. This data is crucial for determining the eligibility of shareholders to participate in the buyback.
- What are the key reasons behind the Dhampur Sugar Mills Ltd Buyback?
The buyback aims to distribute surplus cash to equity shareholders, enhancing their returns. It’s designed to benefit small shareholders and improve the return on equity by reducing the equity base, potentially increasing long-term shareholder value.
- How can I apply for the Dhampur Sugar Mills Ltd Buyback?
Once the buyback opens for subscription, interested shareholders can apply for the buyback by visiting https://www.bonanzaonline.com/. It’s important to ensure eligibility and follow the given procedures.
- How do I check the allotment status for the Dhampur Sugar Mills Ltd Buyback?
The allotment status for the Dhampur Sugar Mills Ltd Buyback can be checked through the registrar, Alankit Assignments Ltd, at http://ipo.alankit.com/.
- What are the financial details of Dhampur Sugar Mills Ltd?
For the fiscal year ending March 31, 2023, Dhampur Sugar Mills Ltd reported a 32.93% increase in revenue and a 9.69% rise in profit after tax (PAT) compared to the previous fiscal year.
- What is the face value of the Dhampur Sugar Mills Ltd. buyback shares?
The face value of the Dhampur Sugar Mills Ltd Buyback shares is Rs 10 per share.