Sugar stock under Rs 100: Rs 31.5 crore share buyback – Offer price, size, record date
Stock under Rs 100: The Board of Directors of Dwarikesh Sugar Industries has approved a buyback offer of 30,00,000 fully paid-up equity shares of face value Re 1 each by the company. This buyback represents 1.59 per cent of the total paid-up equity share capital of the sugar company, it announced.
Stock under Rs 100: A sugar company, whose stock is trading under Rs 100 on BSE, is set to buyback its shares from the holders. Small cap company Dwarikesh Sugar Industries on Friday announced its stock repurchase plan approved by its board of directors.
Share or stock buyback is a corporate action in which a company decides to purchase their own shares from their existing shareholders either through a tender offer or through an open market. In such a situation, the price of concerning shares is generally more than the current market price.
Dwarikesh Sugar Share Buyback
The Board of Directors of Dwarikesh Sugar Industries has approved a buyback offer of 30,00,000 fully paid-up equity shares of face value Re 1 each by the company. This buyback represents 1.59 per cent of the total paid-up equity share capital of the company.
“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,” it said.
Dwarikesh Sugar Share Buyback Size
The aggregate consideration of this proposed buyback is up to Rs 31.50 crore. This aggregate consideration represents 4.49 per cent of the aggregate of the fully paid-up Equity Share capital.
Dwarikesh Sugar Share Buyback Price
The sugar company will repurchase the stocks at a price of Rs 105 per Equity Share, which translates to a 30 per cent premium over the current market price of Rs 80.85.
Dwarikesh Sugar Share Buyback Record Date
To determine who will be eligible to participate, Dwarikesh Sugar Industries has fixed March 20 as the record date.
Key Details of Dwarikesh Sugar Industries Share Buyback
Number of shares – 30,00,000
Face value per share – Re 1
Buyback offer price – Rs 105 per equity share
Aggregate consideration – Up to Rs 31,50,00,000
Buyback size – 1.59 per cent of the total paid-up Equity Share Capital
Record date – 20th March 2024
Dwarikesh Sugar Industries Share Price History
Shares of the sugar company closed at Rs 80.85 apiece on BSE on Thursday, March 7. The sugar stock has more than doubled investors’ money in the last 3 years, rising 130 per cent, according to BSE analytics. In the last 5 years, the counter has rallied 165 per cent while zoomed 3297.06 per cent in the last 10 years.