Dhampur Sugar Mills will buy 10.81 lakh equity shares back for around Rs 20 crore. The company said on Tuesday that it would buy it through a tender offer. The company said in the regulatory filing that it will buy the company’s full -fledged equity shares up to Rs 10,81,081 equity share of Rs 10 at a price of Rs 10 at a priced of Rs 185 per share on a proportional basis through the tender offer process. According to PTI news, the record date for share buyback is 23 May.
The company will get this help
According to the news, the buyback will help the company to distribute the surplus fund to its shareholders, which roughly keep the equity shares in proportion to their shareholding, which will increase the overall returns to the shareholders and will also help in improving the returns on equity by reducing the equity base, which will increase the price of shareholders in a long period. The Board of Directors of the company approved the buyback proposal on 16 May. Shares of Dhampur Sugar Mills were trading at Rs 145.35 below their previous bandh on BSE at Rs 145.35.
Eligible shareholders can take part in buyback offer
All eligible shareholders of the company who have shares in physical or demat formats on a record date can participate in the buyback offer through their stockbroker. Eligible shareholders who hold in demat form should tell their broker about the details of equity shares they want to present in a buyback offer. Keep in mind that the qualified shareholders who keep shares physically have to present their broker to the original share certificate and other documents.
Once the document verification document verification is completed, the broker gives an order on the stock exchange and submits the original share certificate and TRS to the registrar. Dhampur Sugar Mills is a major Indian integrated sugarcane processing company established in the year 1933. Its headquarters are in New Delhi.
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