This smallcap firm broadcasts second buyback at 24% premium: Do you have to take part?

Dhampur Sugar Mills in Friday’s commerce ( Might 16, 2025)  introduced a share buyback at a premium of 24 per cent . The sugar firm after market hours in the present day introduced a purchase again of as much as  10,81,081 totally paid-up fairness shares. 

“the proposal for buyback of as much as 10,81,081 totally paid-up fairness shares of face worth of Rs. 10/- (Rupees Ten Solely) (“Fairness Shares”) by the Firm (“Buyback”) representing as much as 1.65 % of the entire variety of Fairness Shares of the Firm, at a worth of INR 185/- (Rupees One Hundred and Eighty 5 solely) per fairness share payable at money for a complete consideration not exceeding Rs. 20,00,00,000 (Rupees Twenty Crores solely) (excluding the transaction prices resembling brokerage, submitting charges, advisors charges, authorized charges, public announcement publication bills, printing costs, dispatch costs, securities transaction tax stamp responsibility and so forth.) (“Transaction Prices”) (“Buyback Measurement”), representing 1.74 % and 1.73 % of the entire totally paid-up fairness share capital and free reserves (together with securities premium account) as per the newest audited standalone monetary statements and audited consolidated monetary statements of the Firm for the monetary 12 months ended March 31, 2025,” mentioned the corporate’s submitting.

The corporate as per the discharge will buyback 10,81,081 fairness shares of face worth of Rs 10- representing as much as 1.65 per cent of the entire variety of shares.

The buyback firm worth has been mounted at Rs 185, signifying a good upside of 24 per cent from in the present day’s shut at Rs 149 per share.

Importantly, the share buyback might be by way of the tender route.

Dhampur Sugar Mills buyback 2025 file date

 The corporate has mounted twenty third Might, 2025 because the Document Date for the aim of figuring out the entitlement and the names of fairness shareholders who’re eligible to take part within the buyback, mentioned the corporate’s launch.

Dhampur Sugar Mills buyback historical past

Dhampur Sugar Mills firm has provide you with the buyback supply final 12 months at a worth of Rs 300 per share by way of the tender supply route.

Do you have to take part?

SimranJeet Singh Bhatia, Senior Fairness Analysis Analyst- Almondz International mentioned, “Dhampur Sugar Mills buyback proposal is optimistic for the traders. The corporate specializes within the built-in processing of sugarcane. It manufacture vary of merchandise which incorporates sugar, distillery (Ethanol), Chemical substances (ethyl acetate) and potable spirits (nation liquor).  Its whole capability stands in Sugar i.e. 24000 TCD (Tons of cane crushed  per day), distillery i.e. 350KLPD, ethyl acetate 140MT per day.”

ISMA has additionally projected a optimistic outlook for 2025-26, backed by favorable climate situations In Uttar Pradesh and different northern states, efforts to switch cane varieties which is anticipated to spice up yields and restoration charges .

Firm’s robust fundamentals and push to scale back debt

The corporate stay deal with decreasing its debt , with whole debt now decreased to Rs 430cr in Sep 24 from  Rs 1142cr as on FY21 which has result in enchancment in protection Ratios. Based mostly on the relative valuations, the inventory is presently buying and selling at 0.50x of TTM FY25 Gross sales. The inventory is presently not overvalued on relative valuations.

We preserve optimistic view on Dhampur Sugar Mills upcoming buyback and suggested traders to take part, he added.

Atul Parakh, CEO of Bigul added, ” Buyers have the selection to take part and obtain money or to carry their shares and profit from the potential long-term worth accretion because of improved monetary metrics post-buyback. By decreasing the variety of excellent shares, the buyback can enhance return on fairness (ROE) and probably enhance earnings per share (EPS) for many who stay invested. Shareholders who don’t take part within the buyback might even see their relative possession share enhance, because the fairness base shrinks.”