Kaveri Seed approves share buyback worth Rs125.65 crore via open market

28 Oct 2022 , 09:37 AM

Kaveri Seed, a manufacturer of agricultural products, approved a share purchase in the open market on Thursday for Rs125.65 crore at a cost of Rs700 per share.

According to the company, “Kaveri Seed at its meeting considered and approved the proposal for the buyback of the company’s fully-paid equity shares with a face value of Rs2 each for an overall sum not exceeding Rs125,65,00,000 at a price not exceeding Rs700 per share, payable in cash, from its shareholders/beneficial owners (other than those who are promoters, members of the promoter group, or persons in control), from the open market through stock exchange mechanism.”

The buyback price is higher by almost 45% when compared to the current market price of Rs 482.

The corporation launched an Rs120 crore open market repurchase last year at an expense of 850 rupees per share.

The company is a small-cap business having a market capitalization of Rs2,810 crore. The largest agricultural business in the nation, Kaveri Seed was founded in 1976 and specializes in hybrid seeds for important Indian crops.

The stock has underperformed over the past year, returning -9% despite increasing almost 13% in just one month.

On the NSE, the price of Kaveri Seed shares increased by as much as 6% to reach its day’s high of Rs485.

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