The shares of the leading sugar producer rose nearly 1 percent to Rs 271.85 a share on Thursday after the company fixed the record date for the share buyback.
Dhampur Sugar Mills Ltd is a small-cap stock, with a market capitalization of Rs 1,781 crore. In a year stock has gained 12 percent.
The company board has approved the buyback of 10 lakh Equity Shares of the face value of Rs. 10 or 1.5063 percent for a price of Rs 300 per share.
The Company has fixed January 17, 2024, as the Record Date to determine the entitlement and the names of the equity shareholders eligible to participate in the Buyback. The company reported in its exchange filing.
The Board has appointed Centrum Capital Limited, as the merchant banker to the Buyback or manager to the Buyback following the Companies Act, as amended and Buyback Regulations.
The Buyback Offer Size represents 2.89% and 2.88% of the aggregate of the Company’s fully paid-up equity capital and free reserves based on both the latest standalone and consolidated audited financial statements of the Company, respectively, for the financial year ended on 31st March 2023, which is less than 10% of the aggregate of the total paid-up capital and free reserves of the Company.
According to financials, operational revenue declined by 15 percent from Rs 541 crore in Q2FY23 to Rs 459 crore in Q2FY24, while net profit fell by 50 percent from Rs 11.54 crore to Rs 5.43 crore over the same time.
The company has two sugar production facilities at Dhampur and Rajpura, with a total capacity of 15,000 MT and 8,500 MT canes per day respectively. The company has a 121 MW renewable energy capacity.
Dhampur Sugar Mills is one of the leading integrated sugarcane processing companies in India. The company has also diversified in the business of renewable power, fuel ethanol, alcohol, extra-neutral alcohol, alcohol-based chemicals, and biofertilizers.
At the time of writing this report, Dhampur Sugar Mills Ltd i shares were trading at Rs 268.20 per share, down 0.22 percent from the previous close price.
Written by Omkar Chitnis
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