Dhampur Sugar to buyback over 10.81 lakh shares at Rs 185/share

New Delhi, May 20 (PTI) Dhampur Sugar Mills on Tuesday said it will buy back over 10.81 lakh equity shares for nearly Rs 20 crore through a tender offer.

In a regulatory filing the company said it will buyback fully paid-up equity shares of the company of face value on Rs 10 each up to 10,81,081 equity shares at a price of Rs 185 per share on a proportionate basis, through the tender offer process.

The record date for the share buyback is May 23.

"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 will also help in improving return on equity, by reduction in the equity base, thereby leading to long-term increase in shareholders' value.

The board of directors of the company approved the buyback proposal on May 16.

Shares of Dhampur Sugar Mills were trading at Rs 145.35, down 0.21 per cent from its previous close on BSE. PTI LUX DRR