Open Market Through Stock Exchange | ₹120.00 Crores | Listing at BSE, NSE | Thu, Sep 2, 2021 - Tue, Mar 1, 2022
Kaveri Seed Company Ltd. Buyback is a tender offer for the repurchase of up to equity shares at a buyback price of ₹850 per share with a face value of ₹2 per share, aggregating to ₹120.00 crores.
The buyback opens on Sep 2, 2021 and closes on Mar 1, 2022.
Bajaj Capital Ltd. is the Manager to the Buyback and Bigshare Services Pvt.Ltd. is the Registrar and R.L.P. Securities Private Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the Kaveri Seed Company Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Thu, Sep 2, 2021
Offer Closing Date
Tue, Mar 1, 2022
Buyback Price
₹850 per share
Record Date
[.]
| Particulars | For the year/period ended (Rs. in Crores) | ||
|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Income | 1,034.99 | 929.81 | 811.85 |
| Profit After Tax | 305.31 | 251.26 | 214.72 |
| Net Worth | 1,262.07 | 981.85 | 1,012.95 |
| Reserves and Surplus | 1,250.00 | 969.78 | 1,000.33 |
Established in the year 1976, Kaveri seeds is the largest agriculture company specializing in Hybrid Seeds in India . The company is engaged in the production, processing, and marketing of high-quality hybrid seeds for different crops like corn, sunflower, cotton, paddy, grain sorghum, etc. The company has recently started dealing in micronutrients and bio-products.
Kaveri seeds has more than 1,00,000 production growers on 65,000 acres of land. Company's products cater across 12 different agro-climatic zones.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Jul-2021 | 787.85 | 680.15 | 733.67 |
| Jun-2021 | 747.15 | 639.00 | 712.07 |
| May-2021 | 815.85 | 592.00 | 727.75 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Jul-2021 | 781.90 | 680.65 | 736.85 |
| Jun-2021 | 747.95 | 675.00 | 711.16 |
| May-2021 | 816.65 | 595.25 | 732.60 |
The Buyback aims to :
i) Help the company return surplus cash to its shareholders holding Equity.
ii) Improve return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value.
iii) Give an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
Kaveri Seed Company Ltd.
513-B, 5th Floor
Minerva Complex, SD Road
Secunderabad – 500003
Secunderabad, Telangana, 500003
Lead Manager(s)
Registered Broker
The Kaveri Seed Buyback opens on September 2, 2021, and closes on March 1, 2022.
The Kaveri Seed Buyback is a Open Market Through Stock Exchange.
Kaveri Seed Buyback Schedule
| Buyback Opening Date | September 2, 2021 |
| Buyback Closing Date | March 1, 2022 |
| Last date for acceptance of shares | Upon relevant pay-out by the Stock exchange |
The Kaveri Seed Buyback is being offered at Rs ₹850 per share.
There is no ratio applicable in case of open market offer through stock exchange mechanism.
The Kaveri Seed Buyback has announced a buyback for an aggregate amount of not more than Rs. ₹120.00 Crores with pricing of Rs. ₹850 per share.
The Buyback aims to :
i) Help the company return surplus cash to its shareholders holding Equity.
ii) Improve return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value.
iii) Give an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
Any equity shareholder holding the shares in Demat form can participate in the buyback offer through their stockbroker. The physical shareholder can participate only once the shares get converted into a Dematerialized form.
The shareholder needs to inform their broker on the details of the Equity shares they wish to sell. The broker will place a sell order whenever the company places a buy order for the buyback. The trade would get executed at the offer price or lesser only when the price offered by the shareholder matches with the buy order placed by the company.
The Kaveri Seed Buyback offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.
