Kaveri Seed Company surged 4.35% to Rs 571.20 after the company's board approved buyback of equity shares at steep premium to current market price.
Meanwhile, the S&P BSE Sensex was down 279.72 points or 0.72% to 38,817.42.
The buyback price of Rs 700 per share represents a 22.55% premium to the stock's current market price of Rs 571.20. On the BSE, 18,000 shares were traded in the counter so far compared with average daily volumes of 21,000 shares in the past two weeks. The stock hit a high of Rs 575.80 and a low of Rs 561 so far during the day.
Kaveri Seed Company said that the company's board has approved buyback of equity shares of up to 28 lakh shares, representing 4.44% of equity shares aggregating to Rs 196 crore on proportionate basis though tender offer route. The buyback price is set at Rs 700 per share. The promoters intend to participate in the proposed share buyback. The announcement was made after market hours yesterday, 24 September 2019.
Kaveri Seed Company is India's leading agriculture company specializing in hybrid seeds.
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