Kaveri Seed Company Ltd

Kaveri Seed Company Ltd

Kaveri Seed Company was incorporated on 27 August 1986 as 'Kaveri Seed Company Private Limited'; with Mr. Gundavaram Venkata Bhaskar Rao Mrs. Gundavaram Vanaja Devi & Mr. Rangineni Venu Manohar Rao as its founder promoters of the Company. Mr. Gundavaram Venkata Bhaskar Rao is one of the graduates in agricultural science and started the business of seed production of public bred varieties of corn bajra and sunflower on his own lands in the village of Gatla Narsingapur Karimgar District Andhra Pradesh. The company has continued to carry on the business into research seed production processing packing and marketing of various high quality hybrids seeds and simultaneously set up a processing plant in Bellary in Karnataka. In 1987 the Company has set up its marketing office at Davangere in Karnataka.In 1996 and set up an R & D facility at Bollaram to carry on research and to breed new hybrids.In 1997 the company has set up a Seed Processing Plant at Biramulguda near Hyderabad. In the same year the company has introduced sunflower hybrid seeds. In 1999 the company has increased the seed conditioning capacity to meet the growing demands by setting up a large scale processing plant at Kandlakoi near Hyderabad. In the year 2002 the company's promoters has entered into a complementary business of Bio-Products and Micro-Nutrients for which they set up a partnership firm under the name and style of M/s. Kaveri Agriteck for manufacturing and marketing bio-products and micro-nutrients under the brand Microteck'. The company has entered into a sub-licensing agreement with Mahyco Monsanto Biotech (India) Limited for Bt. transgenic technology for cotton in the year 2004.A new seed conditioning plant with Cob Dryers was set up at Gundla Pochampally near Hyderabad in 2005 and in Eluru in Andhra Pradesh in 2006. These cobs drying facilities help in processing Corncobs collected from production fields with high moisture levels. These facilities gave us the advantage of obtaining seeds with optimum moisture level with prolonged shelf life and increased vigor. In September 2006 the company has acquired the business assets and liabilities of M/s. Kaveri Agriteck; giving us the ability of meeting farmers' needs of seeds as well as plant nutrients (i.e. bio-products and micro-nutrients) under one roof. Currently the company has engaged into production and marketing of agri-inputs (seeds of wide range of crops such as corn sunflower cotton pearl millet grain sorghum paddy and hybrid vegetables and also micronutrients bio products and organic products). On November 7 2006 the Company was converted into a public limited company and company name was changed to Kaveri Seed Company Limited.On August 4 2007 the company has entered into a non-exclusive licensing agreement with JK Agri Genetics Limited for using insect tolerant seed lines for producing testing marketing and selling genetically modified hybrid cotton planting seed in India.During the year 2014 the Company's Equity Share has subdivided bearing the face value of Rs.10/- each into 5 Equity Shares of the face value of Rs.2/- each into fully paid up Equity Shares. Consequent to stock split the company's paid up capital is of 68742205 Equity Shares of Rs.2/- each.The Board of Directors of the Company at its meeting held on 27th March 2017 has approved buyback up to 2962963 Equity Shares of Rs.2/- each on a proportionate basis at a price of Rs.675/- per equity share payable in cash for an aggregate consideration not exceeding Rs.200 Crores excluding transaction costs viz. brokerage applicable taxes such as securities transaction tax service tax stamp duty etc. by way of a Tender offer route through Stock Exchange Mechanism. This is in accordance with the provisions of the Companies Act 2013 and the Securities and Exchange Board of India (Buy Back of Securities) Regulations 1998 and other applicable laws and regulations. The buyback is a capital allocation decision taken with the objective of seeking a fairer valuation of the company's stock while improving the company's Return on Equity and increasing shareholder value in the longer term. The offer size of the buyback is within the prescribed limit of 25% of the aggregate of paid up capital and free reserves of the company and represents 4.29% of the total issued and paid up equity share capital of the company as on 31st March 2016.