Dhampur Sugar Mills Limited has informed the Exchange about public Announcement - Buyback of Shares
DHAMPURSUG · price
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Dhampur Sugar Mills has announced a buyback of up to 10,81,081 equity shares (1.65% of paid-up capital) at Rs. 185 per share, for an aggregate of up to Rs. 20 Crores. The buyback will be carried out through the tender offer route on a proportionate basis, with the record date set for May 23, 2025. The offer price represents a premium of around 31.6% over the 3-month volume weighted average price and about 33% over the closing price on May 7, 2025, when the stock traded at around Rs. 148-149. Promoters and promoter group entities (holding 49.10% of the company) have expressed intent to participate and may tender their shares. The company is funding the buyback from existing cash and cash equivalents, and shares bought back will be extinguished.
The buyback at a meaningful premium to recent market prices is a positive signal of management's confidence in the company's valuation and intent to return surplus cash to shareholders. Eligible shareholders as on the record date can tender shares for a guaranteed exit above market levels, while the relatively small size (1.65% of capital) limits the broader impact on share count and earnings per share.