Kaveri Seed jumps 5% after board approves share buyback plan

The board approved the buyback plan of 2.8 million equity shares at Rs 700 per share.

Shares of Kaveri Seed Company jumped 5 per cent to Rs 576 per share on the BSE on Wednesday in intra-day trade after its board approved buyback of 2.8 million equity shares at Rs 700 per share via tender offer.

In a regulatory filing at the bourses, Kaveri Seed Company said its board has approved proposal for buyback of 2.8 million equity shares, representing 4.4 per cent of the total equity of the company, for an aggregate amount of Rs 196 crore. The shares would be bought at Rs 700 per share.

The company further added that the promoters and the promoter group of the compary would participate in the proposed buyback.

So far in calendar year 2019, the stock has underperformed the benchmark S&P BSE index. While the former has slipped 4.6 per cent YTD, the frontline index has gained 8 per cent YTD. 

At 12:05 pm, the stock was trading at 3 per cent higher at Rs 564.3 per share. In comparison, the S&P BSE Sensex was ruling 0.93 per cent lower at 38,734 level.