Kaveri Seed's share buyback announced. Key things to know
1 min read . Updated: 27 Oct 2022, 01:43 PM IST
Premium- Kaveri Seed shares surged more than 6% to ₹484 apiece on the BSE in afternoon deals
Kaveri Seed Company Ltd on Thursday announced that its board of directors at the meeting held on October 27, 2022 have approved share buyback of up to ₹125.6 crore at maximum buyback price not exceeding ₹700 per share. Shares of Kaveri Seed surged more than 6% to ₹484 apiece on the BSE in afternoon deals.
"The board at its meeting today considered and approved the proposal for the buyback of the company's fully-paid equity shares having a face value oI a 2/- each for an aggregate amount not exceeding ₹125.6 crore excluding any expenses incurred or to be incurred for the Buyback viz. brokerage, costs, feet turnover charges, taxes such as buyback tax, securities transaction tax, goods and services tax (if any) and income tax, stamp duty, advisors fees, printing expenses, filing fees and other incidental and related expenses and charges, and at a price not exceeding ₹700/- payable in cash from its shareholders/beneficial owners from the open market," the company informed in the exchange filing.
Kaveri Seed said that the maximum buyback Size represents 9.85% and 9.68% of the aggregate of the total paid-up capital and free reserves of the company based on the audited standalone and consolidated financial statements of the company as at March 31, 2022, respectively.
A share buyback, also known as share repurchase, is a corporate action to buy back its own outstanding shares from its existing shareholders usually at a premium to the prevailing market price. It can be an alternative tax-efficient way to return money to shareholders. Share buybacks reduce the number of shares in circulation, which can increase the share value and the earnings per share (EPS).
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Kaveri Seed Company Ltd is a leading largest agriculture company in India, specializing in hybrid seeds in key Indian crops. Kaveri Seed shares are down about 16% in 2022 (YTD) so far, whereas it has declined over 9% in a year's period. The company had last announced a buyback of its equity shares in August 2021 for an aggregate amount of ₹120 crore from open market through stock exchange mechanism.
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