Shares of Dhanuka Agritech Ltd. gained over 7% on Monday after its board approved a buyback of shares worth Rs 100 crore.
The board of the company approved the buyback of 5 lakh fully paid-up equity shares with a face value of Rs 2 through the tender offer route. It represents 1.10% of the paid-up equity share capital, the company said in the exchange filing on Tuesday.
The buyback offer will open on Aug. 22 and close on Aug. 28. Dhanuka Agritech will buy the shares back at Rs 2,000 apiece.
As of June 30, Dhanuka Agritech had 4.57 crore shares outstanding, according to data available on the National Stock Exchange's website.
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Shares of Dhanuka Agritech surged 7.02% to Rs 1,870, the highest level since Aug. 12. It pared gains to trade 2.44% higher at Rs 1,790.05 as of 1:00 p.m., compared to 0.12% advance in the NSE Nifty 50 index.
The stock gained 130.14% in 12 months and 69.35% on year to date basis. Total traded volume so far in the day stood at 0.9 times its 30-day average. The relative strength index was at 55.28.
Out of 13 analysts tracking the company, eight maintain a 'buy' rating, three recommend a 'hold,' and two suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside/downside of 5.4%
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