Dhanuka Agritech advances after setting final terms of share buyback

Dhanuka Agritech rose 2.45% to Rs 767.20 at 13:50 IST on BSE after the company's buyback committee of board of directors determined the final buyback price at a decent premium to the ruling price.

The announcement was made during market hours today, 3 January 2017.

Meanwhile, the S&P BSE Sensex was up 62.68 points or 0.24% at 26,658.13.

On the BSE, 6,656 shares were traded on the counter so far as against the average daily volumes of 9,483 shares in the past one quarter. The stock had hit a high of Rs 776.25 and a low of Rs 746.95 so far during the day. The stock had hit a record high of Rs 777 on 31 August 2016 and a 52-week low of Rs 473 on 20 January 2016.

The stock had outperformed the market over the past one month till 2 January 2017, gaining 5.94% compared with Sensex's 1.39% rise. The scrip had also outperformed the market in past one quarter, rising 11.92% as against Sensex's 4.56% decline.

The mid-cap company has equity capital of Rs 10 crore. Face value per share is Rs 2.

Dhanuka Agritech announced that the buyback committee of board of directors of the company at a meeting held on 3 January 2017, have determined the final buyback price of Rs 850 and the final amount for buyback to be Rs 80 crore. The total number of shares to be bought back in the buyback shall be 9.41 lakh equity shares, representing about 1.88% of the total issued and paid-up equity capital of the company as on 31 March 2016.

The terms of buyback are within the maximum limits approved by the board of directors at a board meeting held on 10 November 2016, and as approved by shareholders by special resolution, through postal ballot, results of which were announced on 2 January 2017.

The final buyback price of Rs 850 per share was at a premium of 10.79% to the ruling price of Rs 767.20.

Dhanuka Agritech's consolidated net profit rose 30.5% to Rs 49.21 crore on 14.4% rise in net sales to Rs 308.97 crore in Q2 September 2016 over Q2 September 2015.

Dhanuka Agritech is engaged in the manufacture of agro-chemicals like herbicides, insecticides, fungicides and miticides.

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