Dhanuka Agritech Clarifies Appreciation Amount Determination for Stock Appreciation Rights Plan 2026

Dhanuka Agritech Clarifies Appreciation Amount Determination for Stock Appreciation Rights Plan 2026​

Dhanuka Agritech Ltd. has provided clarity regarding the methodology for determining the appreciation amount payable under its proposed Dhanuka Stock Appreciation Rights Plan, 2026 (SAR 2026). The clarification addresses questions raised by various proxy advisory firms concerning the mechanics of the plan.

Under the SAR 2026, every Stock Appreciation Right (SAR) exercised by a Participant entitles that participant to receive a cash amount equivalent to the appreciation in the value of the underlying Equity Share, determined strictly according to the terms set out in the SAR Plan.

Calculating the Appreciation Amount​

The company specified the exact calculation method for the appreciation amounts due upon the exercise of each SAR. The structure mandates that the appreciation amount will be calculated using the following formula:

Appreciation Amount = (Fair Market Value as on the date of Exercise of SAR - Exercise Price) × Number of SARs Exercised

A key condition outlined in the plan pertains to the setting of the exercise price. It is stipulated that the exercise price must not be less than the closing Market Price of the Shares on the date of grant, particularly if a high number of shares traded on that grant date.

DHANUKA Stock Price Movement​

Dhanuka Agritech Limited's shares gained 2.55% on today's close, settling at ₹1032.7 after rising from its previous close. The stock saw a total traded volume of 60,806 shares during the market session.