Kaveri Seed Company plans share buyback, stock gains 2%

Kaveri Seed Company gained 2.3 per cent to Rs 541.95 per share in the morning deals on the BSE on Tuesday after the company said its Board would consider share buyback of fully paid-up equity shares.

"A meeting of the Board of Directors of the company will be held on Tuesday, September 24th, 2019, to consider a proposal for buyback of fully paid-up equity shares, quantum and mode of buyback and other matters incidental thereto in accordance with rules laid down by Securities and Exchange Board of India (Sebi)," it said in an exchange filing. READ FILING HERE

At 10:18 am, the stock was trading 1.9 per cent higher at Rs 539 apiece, as against 0.6 per cent decline in the benchmark S&P BSE Sensex. A total of 1.09 lakh shares changed hands till the time of writing this report.

The trading window for key managerial personnel and designated employees would remain closed between September 17 and 26, it added.

So far in 2019, the agricultural product company has underperformed the benchmark Sensex by slipping 8 per cent year-to-date (YTD). In comparison, the S&P BSE Sensex has gained 3 per cent during the same period.

In April-June quarter of the financial year 2020 (Q1FY20), Kaveri Seed Company posted a standalone net profit of Rs 228.9 crore, up 8.71 per cent  on year-on-year (YoY) basis. The sales stood at Rs 655.47 crore, up 13 per cent, as against Rs 581.89 crore during the previous quarter ended June 2018.