Dwarikesh Sugar Industries Limited Buyback

The Buyback is being undertaken for the following objectives:

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 reducing 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 the allocation of a 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 shareholders as per Regulation 2(i)(n) of the Buyback Regulations.

The Buyback gives an option to the Eligible Shareholders to either (a) choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or (b) choose to not participate and enjoy a resultant increase in their percentage shareholding, post-Buyback, without additional investment.