Dhanuka Agritech gains up to 8% on share buyback plans

Shares of Dhanuka Agritech rallied up to 8% to the day’s high price of Rs 742 on Friday on share buyback plans.

“We wish to inform you that at the said meeting, the Board of Directors shall also consider the proposal for buyback of fully paid-up equity shares of the company through Tender Offer route, up to such amount of the aggregate of company's paid-up equity share capital and free reserves as the Board may decide in accordance with Section 68, 69 and 70 of the Companies Act, 2013 and the SEBI(Buyback of Securities) Regulations, 2018”, said the company filing with the exchanges on Thursday.

The company will be mulling over a buyback through the tender offer route.

In 2020, the company approved the buyback of up to 10 lakh equity shares at a price of Rs 1000 per share for a buyback size not over Rs 100 crore.

Dhanuka Agritech has offered multibagger returns of 150% over a three-year period.

It is a smallcap firm with a market capitalization of Rs 3,390 crore. The company is among the leading agrochemical companies and is listed by Forbes Magazine in the category of “200 Best under A Billion Companies in Asia Pacific”.