“Kaveri Seed at its meeting considered and approved the proposal for the buyback of the company’s fully-paid equity shares having a face value of Rs 2 each for an aggregate amount not exceeding Rs 125,65,00,000 at a price not exceeding Rs 700 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,” said the company in an exchange filing.
The buyback price considering the current market price of Rs 482 is at a premium of over 45%.
Last year, the company announced buyback through an open market route of Rs 120 crore at a price of Rs 850 per share.
Kaveri Seed is a smallcap company with a market capitalization of Rs 2,810 crore. Established in the year 1976, Kaveri Seed is the country’s largest agricultural company specializing in hybrid seeds in major Indian crops.
The stock has been an underperformer with a negative return of 9% in the last one-year, while its one-month return has been over 13%.
The shares of Kaveri Seed rallied up to 6% to the day’s high price of Rs 485 per share on the NSE.