Dhampur Sugar, Chambal Fertilisers Rs 30-700 Crore Buyback Record Dates: How To Apply At Zerodha? FIND OUT!

Two stocks namely Dhampur Sugar Mills and Chambal Fertilisers & Chemicals will be in focus in the trading week from January 15-20 due to the record date of their respective buyback. Dhampur Sugar will be opening its Rs 30 crore worth of share buyback, while Chambal Fertilisers is launching its buyback to the tune of a massive Rs 700 crore.

The buyback will help both Dhampur Sugar and Chambal Fertilisers to distribute surplus funds to their 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 reducing the equity base, thereby, leading to long term increase in shareholders value.

Dhampur Sugar Mills Buyback:

Leading sugarmills company, Dhampur has announced a buyback of 10,00,000 fully paid-up equity shares having a face value of Rs 10 each, representing 1.5063 % of the total paid Equity Share Capital of the company.

The buyback price is fixed at Rs 300 per share, which is at a premium of 12.2% from the current market price of Rs 267.50 apiece on BSE. Dhampur's market cap stood at Rs 1,775.87 crore.

The record date is fixed on January 17, 2024, to determine the
entitlement and the names of equity shareholders who are eligible to participate in the buyback.

Chambal Fertilisers & Chemicals Buyback:

Chambal Fertilisers has fixed January 18, as the record date for determining eligible shareholders for the buyback. The company will be launching a buyback of up to 1,55,55,555 fully paid-up equity shares having a face value of Rs 10 each.

The buyback has a floor price of Rs 450, which is at a premium of 17.3% from the current market price of Rs 383.65 apiece. The buyback size is Rs 700 crore.

Some of the other key reasons for buyback are --- to improve earnings per share; improve return on capital, return on net worth and to enhance the long-term shareholder value; provide an additional exit route to shareholders when shares are undervalued or are thinly traded; provide an additional exit route to shareholders when shares are undervalued or are thinly traded; enhance consolidation of stake in the company; prevent unwelcome takeover bids; return surplus cash to shareholders; achieve optimum capital structure; support share price during periods of sluggish market conditions; and service the equity more efficiently, as per BSE FAQs.

How To Apply For These Buyback At Zerodha?

As per Zerodha's website, the process to apply for corporate actions such as buybacks, takeovers, and delistings depends on whether a Demat Debit and Pledge Instruction (DDPI) or Power of Attorney (POA) has been submitted or not.

The steps to be followed without DDPI/POA and with DDPI/POA are mentioned below:

Without DDPI/POA:

Step 1: Visit console.zerodha.com/dashboard.

Step 2: Click on Portfolio and then Corporate Actions.

Step 3: Hover on the stock, select Options and click on Place Order.

Step 4: Enter the number for tender and click on Submit.

Step 5: Authorise using CDSL TPIN and verify the OTP on the pop-up window.

Step 6: Hover on the stock again, select Options and click on Place Order.

Step 7: Enter the number of shares for tender and click on Submit.

With DDPI/POA

Step 1: Visit console.zerodha.com/dashboard.

Step 2: Click on Portfolio and then Corporate Actions.

Step 3: Hover on the stock, select Options and click on Place Order.

Step 4: Enter the number of shares and click on Submit.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.