Kaveri Seed Company soars after board OKs Rs 125 crore buyback proposal

Kaveri Seed Company jumped 6.09% to Rs 484.80 after the company's board approved a proposal to buy back up to 17.95 lakh shares of the company at a price not exceeding Rs 700 per share.

The maximum consideration payable in cash for the proposed buyback shall not exceed Rs 125,65,00,000, the company said.

The number of shares that the company proposes to buyback represents 3.08% of the total issued and paid-up equity share capital of the company.

If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares bought back could exceed the maximum buyback shares, but will always be subiect to the maximum buyback size.

The company shatl utilise at least 50% of the amount earmarked as the maximum buyback size for the buyback i.e. Rs 62,82,50,000 (minimum buyback size).

Based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 8,97,500 equity shares.

The shares would be bought back from the company's shareholders/beneficial owners, other than those who are promoters, members of the promoter group or person in control, from the open market through the stock exchange mechanism.

Public shareholders held 42.56% stake in the company as on 21 October 2022. Post buy-back, the stake held by the public will come down to 40.74%. Accordingly, the stake of the promoters and the promoters group would rise to 59.26% from 57.44%.

Kaveri Seed Company produces, processes, and markets hybrid seeds for crops that include corn, sunflower, cotton, paddy, and grain.

The company's consolidated net profit rose 19.7% to Rs 243.82 crore on a 8.9% increase in sales to Rs 685.59 crore in Q1 FY23 over Q1 FY22.

Powered by Capital Market - Live News