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Kaveri Seed rises after board approves Rs 120-cr share buyback

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Capital Market
Last Updated : Aug 25 2021 | 3:04 PM IST

Kaveri Seed Company gained 2.44% to Rs 593.55 after the company's board approved a proposal to buyback equity shares worth upto Rs 120 crore.

The company proposes to buyback shares at maximum price of Rs 850 each while the aggregate consideration of the buyback shall not exceed Rs 120,00,13,000.

The indicative maximum number of equity shares proposed to be bought back at the maximum buyback size and maximum buyback would be 14,11,780 equity shares, which represent approximately 2.34% of the paid up shares of the company.

The company said it will utilise at least 50% of the amount earmarked as the maximum buyback size for the buyback i.e. Rs 60,00,06,500.

Based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 7,05,890 equity shares.

As on 20 August 2021, promoters held 56.85% stake while public shareholders hold 43.15% stake in the company.

Kaveri Seed Company is engaged in the production, processing and marketing of hybrid seeds. On a consolidated basis, the company's net profit declined 30.9% to Rs 204.74 crore on a 12.5% fall in net sales to Rs 629.78 crore in Q1 FY22 over Q1 FY21.

So far, the stock has hit a day's high of Rs 618.70 and a day's low of Rs 585.40. The counter hit a 52-week high of Rs 815.85 on 17 May 2021. From its 52-week low of Rs 463.15 hit on 2 November 2020, the stock has moved 26.7% higher.

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First Published: Aug 25 2021 | 2:24 PM IST

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