Dhanuka Agritech Ltd’s share buyback offer worth Rs 850 crore will open to investors today (December 26) and end on January 6, 2023.

The company has proposed to buy back 10 lakh shares with a par value of Rs 2 for Rs 850 each for a total amount of Rs 85 crore through a tender offer process.

Eligible shareholders of Dhanuka Agritech who held shares in the company in their Demat accounts as of the record date (i.e., November 18, 2022) may bid for their shares online if they wish to participate in the buyback offer.

The entitlement ratio for retained minority shareholders is four shares out of every 33 paid-up shares held on the record date. For the general category or all other eligible shareholders, three shares for every 160 paid-up shares were held on the record date.

The entitlement ratio indicates the minimum number of shares that a company is sure to accept in a buyback offer.

Shareholders must complete an offer letter/tender form sent to their registered email ID to bid for shares. On the bid form, there will be three main fields – the number of shares of the company you own as of the record date, the number of shares eligible for buyback, and the number of shares requested for the buyback.

Shareholders need to enter the number of shares they own and the amount they wish to bid. An electronic copy of this tender form must then be sent by email to the service provider of the shareholder’s Demat account.

Alternatively, shareholders can also access their Demat account online. There they should see the option to apply for an open buyback offer. They can fill out the bid form and submit it there.

Shares booked for the offer will be debited from the Demat account and transferred to the Registrar and Transfer Agent (RTA) upon submission/receipt of the tender form.

Any share tender that exceeds the acceptance ratio will be credited to the client’s Demat account.

The acceptance ratio of the number of shares accepted in a buyback offer to the total number of shares offered for the buyback. The ratio is calculated after the buyback window closes. It depends on the size of the repo and the number of bids during the repo.

Shares of Dhanuka Agritech were at Rs 667.90, up 0.4%.