Dhanuka Agritech buyback 2026: ₹70 cr at ₹1,400

Dhanuka Agritech announces ₹70 crore share buyback

Dhanuka Agritech Limited has announced a share buyback through the tender offer route, signalling a capital return move alongside its financial disclosures. The company’s board approved the repurchase of up to 5,00,000 fully paid-up equity shares. The buyback price has been set at ₹1,400 per share, taking the total offer size to ₹70 crore. The company stated the buyback will be carried out on a proportionate basis through the tender offer mechanism as prescribed under the SEBI (Buyback of Securities) Regulations, 2018, and the Companies Act, 2013.

The record date for determining eligible shareholders has been fixed as May 29, 2026. Investors holding shares as of the record date will be eligible to tender shares for acceptance under the buyback, subject to the entitlement framework. The company also disclosed that promoters and promoter group entities intend to participate in the proposed buyback offer.

Key terms: shares, price, and offer size

The board has approved the buyback of up to 5 lakh equity shares, each having a face value of ₹2. At a buyback price of ₹1,400 per share, the aggregate buyback size works out to ₹70 crore. The buyback amount, as disclosed, does not include transaction costs such as brokerage, fees, turnover charges, and applicable taxes.

In one description, the buyback was noted as representing 4.20% of the company’s total paid-up equity capital and free reserves as of March 31, 2026. In the exchange filing cited in the same set of disclosures, the company described the offer as being less than 10% of paid-up equity capital and free reserves as per the latest audited financial statements as at March 31, 2026.

Tender offer route and stock exchange mechanism

Dhanuka Agritech said the buyback will be executed via the tender offer route through the stock exchange mechanism. Under this structure, eligible shareholders can tender shares during the buyback window, and the company accepts shares on a proportionate basis depending on subscription levels. The company’s communications also described this as a tender offer for the repurchase of up to 0.05 crore equity shares.

Some coverage of the announcement also referenced that the buyback would be executed through the open market route or a tender offer depending on regulatory and market conditions. However, the company’s filing referenced a tender offer route and proportionate acceptance, aligning the process with SEBI buyback rules.

Record date: May 29, 2026

The company has fixed Friday, May 29, 2026 as the record date. Shareholders whose names appear in the register of members as on that date will be considered eligible for participation. The record date also matters for other corporate actions announced with the results, including dividend eligibility.

The buyback eligibility, acceptance, and final participation depend on the terms set in the letter of offer and the entitlement ratio determined for each shareholder category. While the company has confirmed the record date, the operational details of bidding and settlement are typically laid out in subsequent buyback documents.

Promoter participation and proportionate acceptance

Dhanuka Agritech stated that promoters and the promoter group have expressed their intention to participate in the proposed buyback. Participation by promoters can influence the post-buyback shareholding mix depending on the extent of acceptance across categories. The company has also said it will acquire shares on a proportionate basis through the tender offer route.

The buyback size has been described as representing 1.11% of the company’s total paid-up equity share capital. This percentage has been repeated across multiple references to the tender offer, alongside the 5 lakh share count.

Dividend announcement alongside buyback

Alongside the buyback, the board recommended a final dividend of ₹2 per equity share for the financial year ended March 2026. This was also described as a 100% final dividend for FY26, given the face value of ₹2 per share. As stated, shareholders on the register as of the record date would be entitled to both the dividend and participation in the buyback, subject to applicable limits.

Q4FY26 context: PAT rises to ₹98 crore

The buyback announcement was made along with Dhanuka Agritech’s Q4FY26 earnings update. The company reported a 29% year-on-year jump in profit after tax (PAT) to ₹98 crore compared with ₹76 crore in the year-ago period. The timing links the capital return decision with the company’s latest reported profitability.

Valuation and premium reference in the disclosures

One report stated that the buyback price of ₹1,400 per share implies a premium of around 30% over Monday’s closing price. While the exact closing price was not provided in the information shared, the premium reference indicates the buyback was announced at a meaningful uplift to the immediately preceding market level cited in that report.

Summary table: Dhanuka Agritech buyback details

Financial snapshot cited with the announcement

Why this buyback matters for shareholders

A tender offer buyback gives eligible shareholders an additional exit opportunity at the stated buyback price, subject to acceptance. The record date sets a clear cut-off for eligibility, which is critical for investors planning participation. The board has also paired the buyback with a final dividend recommendation of ₹2 per share, adding another direct shareholder payout component for FY26.

At the same time, investors should note that the company clarified the offer size excludes transaction costs such as brokerage and applicable taxes. These costs can affect net proceeds for shareholders who tender shares, depending on the broker and the transaction structure.

What to watch next

The company has already fixed the record date at May 29, 2026, and disclosed the key economic terms of the buyback. The next steps typically involve publishing the detailed tender offer schedule and procedural documents under SEBI buyback regulations. Investors will also track final dividend timelines and any subsequent updates the company issues related to participation and settlement.