Kaveri Seed gains after RBI lifts curbs on foreign investment

Kaveri Seed Company rose 2.74% to Rs 804.50 at 9:52 IST on BSE after the Reserve Bank of India on Friday, 12 June 2015, notified that the restrictions placed on the purchase of shares of the company are withdrawn with immediate effect.

Meanwhile, the S&P BSE Sensex was up 150.73 points or 0.57% at 26,576.03.

On BSE, so far 13,000 shares were traded in the counter as against average daily volume of 18,292 shares in the past one quarter.

The stock hit a high of Rs 820 and a low of Rs 800 so far during the day. The stock had hit a record high of Rs 1,077 on 20 March 2015. The stock had hit a 52-week low of Rs 605 on 16 June 2014.

The stock had underperformed the market over the past one month till 12 June 2015, sliding 4.23% compared with Sensex's 1.68% fall. The scrip had also underperformed the market in past one quarter, declining 17.57% as against Sensex's 8.66% fall.

The small-cap company has equity capital of Rs 13.81 crore. Face value per share is Rs 2.

The Reserve Bank of India (RBI) on Friday, 12 June 2015 notified that the foreign shareholding by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) in Kaveri Seed Company has gone below the revised threshold limit. Hence the restrictions placed on the purchase of shares of the company are withdrawn with immediate effect. The RBI further notified that FIIs/RFPIs can now invest up to 49% of the paid up capital of Kaveri Seed Company under the Portfolio Investment Scheme (PIS).

On consolidated basis, Kaveri Seed Company's net profit dropped 29% to Rs 1.25 crore on 1.9% growth in net sales to Rs 39.95 crore in Q4 March 2015 over Q4 March 2014.

Kaveri Seed Company makes hybrid seeds.

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