Dhampur Sugar Mills bought back shares at ₹185 per share through a tender offer that ran from 29 May 2025 to 4 June 2025 (record date 23 May 2025), with the shares listed on the BSE, NSE. Shareholders on the register on 23 May 2025, the record date, were eligible to tender. The offer covered 10,81,081 shares, 1.65% of the equity, about ₹20 crore.
The buyback price was 27 percent above the closing price of ₹145.65 on 17 May 2025, the last close before the offer; a small shareholder could tender up to 1,081 shares within the two-lakh-rupee limit. Founded in 1933, Dhampur Sugar Mills Limited specializes in the integrated processing of sugarcane. The company is involved in the production and sale of sugar, chemicals, ethanol, and power co-generation.
The company uses the by-products such as bagasse and molasses in its distillery and co-generation activities while producing sugar. The Dhampur Group possesses and runs two sugarcane crushing complexes that are fully integrated, with different capacities.
| Acceptance | Shares accepted | Profit |
|---|---|---|
| 33% | 356 | ₹14,008 |
| 50% | 540 | ₹21,248 |
| 75% | 810 | ₹31,873 |
| 100% | 1081 | ₹42,537 |
Before brokerage and tax, on the maximum small-shareholder holding at the last close before the offer; the offer has since closed.
| Metric | 31-Mar-24 | 31-Mar-23 |
|---|---|---|
| Profit After Tax | 132.91 | 150.3 |
| Revenue | 2,840.75 | 2,671.21 |
| Total Assets | 2,350.8 | 2,115.02 |
The Buyback will help the Company to distribute surplus funds to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the shareholders and it will also help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders' value;
The Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve allocation of number of equity shares as per the entitlement to the shareholders or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the small shareholders.
The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as small shareholder as per Regulation 2(i)(n) of the Buyback Regulations;
and The Buyback gives an option to the Eligible Shareholders to either (a) choose to participate and get cash instead of Equity Shares to be accepted under the Buyback or (b) choose not to participate and enjoy a resultant increase in their percentage shareholding, post Buyback, without additional investment.
In a tender offer the company fixes a price, usually above the market price, and invites every shareholder who held shares on the record date to offer some or all of them back. The entitlement ratio says how many shares you may tender for every share you hold, and because most offers are oversubscribed the acceptance ratio, the share of tendered shares the company actually buys, is known only after the offer closes.
Shares are tendered through your broker during the offer window; accepted shares are paid for at the buyback price and the rest return to your demat account within a few days of the close.
Fifteen percent of every tender offer is reserved for small shareholders, defined as those whose holding in the company was worth two lakh rupees or less at the market price on the record date. Because far fewer shares are tendered in that category, its entitlement ratio is usually much higher than the general category's, and that reservation is the reason retail investors follow buybacks at all.
The figures on this page show how many Dhampur Sugar Mills shares fit within the limit, what they cost at the last closing price, and what the profit would be at different acceptance ratios, before brokerage and tax.
Since October 2024 the amount a shareholder receives in a buyback is taxed as a dividend in their hands at their slab rate, and the cost of the accepted shares becomes a capital loss that can be set off against capital gains. That makes the after-tax result quite different from the headline premium, and for a shareholder in a high tax bracket a buyback with a modest premium can be worth less than selling on the exchange.
Work it through for your own bracket, or ask a tax adviser, before tendering.
₹185 per share, 27 percent above the closing price of ₹145.65 on 17 May 2025, the last close before the offer. The premium over the market price is what made tendering worthwhile.
23 May 2025. Shareholders had to hold the shares in their demat account on that date, which meant buying them by 22 May 2025 so that delivery settled in time.
The tender window ran from 29 May 2025 to 4 June 2025. Shares were tendered through brokers, and tender forms were accepted until 4 June 2025.
2/121: the company accepted 2 shares for every 121 held, about 1.6 percent of a small shareholder's holding, before any unaccepted shares from other categories were redistributed. The general category ratio was 2/121.
Up to 1,081 shares, which is the two-lakh-rupee small-shareholder limit divided by the buyback price of ₹185. At the closing price of ₹145.65 that holding cost about ₹1,57,448.
The offer closed on 4 June 2025. The company has not published the final acceptance ratio; the table shows what the profit would have been at 33 to 100 percent acceptance. At 33 percent the profit on a maximum small-shareholder holding would have been about ₹14,008; at 100 percent about ₹42,537, before brokerage and tax.
Accepted shares were paid for at ₹185 and unaccepted shares were returned to demat accounts by 11 June 2025.
For buybacks completed after 1 October 2024 the amount received is taxed as dividend income at your slab rate, and the cost of the accepted shares becomes a capital loss that can be set off against capital gains. Confirm the treatment for your own position with a tax adviser.