Tender Offer | ₹325.00 Crores | Listed at BSE, NSE | Thu, Feb 29, 2024 - Wed, Mar 6, 2024
Kaveri Seed Company Ltd Buyback is a tender offer for the repurchase of up to 0.45 crore equity shares at a buyback price of ₹725 per share with a face value of ₹2 per share, aggregating to ₹325.00 crores.
The record date for determining eligible shareholders is Feb 23, 2024. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Feb 29, 2024 and closes on Mar 6, 2024, with the last date for receipt of tender forms being Mar 6, 2024.
The finalisation of buyback acceptance is expected on Mar 13, 2024, followed by settlement of bids on Mar 14, 2024.
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, Feb 29, 2024
Offer Closing Date
Wed, Mar 6, 2024
Buyback Price
₹725 per share
Record Date
February 23, 2024
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 116 Equity Shares out of every 459 Fully paid-up Equity Shares held on the Record Date. | 672,414.00 |
| General Category for all other Eligible Shareholders | 46 Equity Shares out of every 643 Fully paid-up Equity Shares held on the Record Date. | 3,810,344.00 |
Kaveri Seed Company Ltd's revenue increased by 11.27% and profit after tax (PAT) rose by 26.74% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 2,051.05 | 1,880.05 | 1,961.86 |
| Revenue | 1,125.26 | 1,011.26 | 1,082.05 |
| Profit After Tax | 260.78 | 205.76 | 309.55 |
| Net Worth | 1,367.28 | 1,282.07 | 1,245.38 |
| Reserves and Surplus | 1,362.26 | 1,282.62 | 1,250.01 |
| Amount in ₹ Crore | |||
Founded in 1976, Kaveri Seeds is an Indian seed company that specializes in hybrid seeds for major crops. The company's product portfolio includes a range of high yielding seeds in field crops, such as Maize, Cotton, Rice, Pearl millet, Mustard, Wheat, Sorghum, Pulses, Bajra, and Sunflower.
With over 100,000 growers producing crops on 65,000 acres of land across 12 agro-climatic zones, the company's seed portfolio caters to diverse crop segments, enabling crops for varying climate and soil conditions.
The Kaveri Seed Company has seven modern processing plants across India. They have a large facility that can dry 2900 tonnes of maize cobs per cycle. They also have warehouses and spacious storage areas capable of storing seed materials under ambient and cold storage conditions. The combined storage space is approximately 6 lakh sq. ft.
The company has research farms in India, leased and owned, covering over 500 acres of land. These farms have all the necessary facilities to conduct research trials for biotic and abiotic situations. The company also has MLT outstations to test their newly developed products.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Jan-2024 | 724.45 | 640.00 | 665.00 |
| Dec-2023 | 642.00 | 590.00 | 616.42 |
| Nov-2023 | 640.10 | 581.00 | 606.44 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Jan-2024 | 724.00 | 640.00 | 667.30 |
| Dec-2023 | 641.65 | 589.85 | 614.17 |
| Nov-2023 | 640.00 | 581.20 | 608.40 |
The Buyback is being undertaken by the company after taking into account the operational and strategic cash requirement for the medium term and for returning surplus funds to the members in an effective and efficient manner. The buyback is being undertaken for the following reasons:
Kaveri Seed Company Ltd
# 513-8, 5th Floor,
Minerva Complex, S.D. Road
Secunderabad - 500 003
Secunderabad, Telangana, 500003
Lead Manager(s)
Registered Broker
The Kaveri Seed Company Buyback 2024 opens on February 29, 2024, and closes on March 6, 2024.
Last date to be eligible to participate in buyback is February 22, 2024.
The Kaveri Seed Company Buyback 2024 is a Tender Offer.
Kaveri Seed Company Buyback 2024 Schedule
| Buyback Opening Date | February 29, 2024 |
| Buyback Closing Date | March 6, 2024 |
| Last Date for receipt of Tender Forms | March 6, 2024 |
| Finalisation of Buyback Acceptance | March 13, 2024 |
| Last Date for settlment of bids | March 14, 2024 |
| Last Date for Extinguishment of Shares | March 26, 2024 |
The Kaveri Seed Company Buyback 2024 is being offered at Rs ₹725 per share.
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 116 Equity Shares out of every 459 Fully paid-up Equity Shares held on the Record Date. | 672,414.00 |
| General Category for all other Eligible Shareholders | 46 Equity Shares out of every 643 Fully paid-up Equity Shares held on the Record Date. | 3,810,344.00 |
The issue size of Kaveri Seed Company Buyback 2024 is 44,82,758 equity shares at ₹725 per share aggregating up to ₹325.00 Crores.
The Buyback is being undertaken by the company after taking into account the operational and strategic cash requirement for the medium term and for returning surplus funds to the members in an effective and efficient manner. The buyback is being undertaken for the following reasons:
All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.
The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.
The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.
The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.
The Kaveri Seed Company Buyback 2024 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.
