Kaveri Seed Company Ltd Buyback (Kaveri Seed Company Buyback 2024) Detail

Last date to be eligible to participate in buyback is February 22, 2024.

The Kaveri Seed Company Buyback 2024 is a Tender Offer.

The Kaveri Seed Company Buyback 2024 is being offered at Rs ₹725 per share per equity share.

The record date for the Kaveri Seed Company Buyback 2024 is February 23, 2024.

The issue size of Kaveri Seed Company Buyback 2024 is of 4,482,758 equity shares at ₹725 per share aggregating upto ₹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:

1. The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares thereby, enhancing the overall return for them;
2. The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve the allocation of a number of shares as per their entitlement or 15% of the number of shares to be bought back, whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "Small Shareholders" as per Regulation 2(i)(n) of the SEBI Buyback Regulations
3. The buyback will help the company to improve the return on equity through the distribution of cash and improving earnings per share by a reduction in the equity base, thereby leading to a the long-term increase in the shareholder's value.
4. The buyback will give an option to the members 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, without any additional investment.
5. Optimise the capital structure.

Letter of Offer

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.