Kaveri Seed Company Ltd Buyback 2024: All You Need to Know

Kaveri Seed Company’s board has greenlit a share buyback program worth Rs 325 crore via the tender offer route, with a buyback price set at Rs 725 per share, representing a 9% premium over current market levels. The plan involves repurchasing up to 44.82 lakh shares, potentially more if purchased below the maximum price. This buyback accounts for 8.01% and 4.01% of the company’s total paid-up capital and free reserves, respectively, as per March 2023 financials.

The company will release detailed information about the buyback process and timeline shortly. A ‘Buyback Committee’ has been established to manage this process, with Sreelatha Vishnubhotla appointed the Compliance Officer. Share buybacks are considered tax-efficient to return cash to investors and can enhance the value of remaining shares.

As per the latest data, the promoters and promoter group hold a 59.9% stake in Kaveri Seed Company. Foreign investors, financial institutions, mutual funds, and other public entities hold the remaining shares. Known for its robust R&D in hybrid seed development, Kaveri Seed Company has over 125 high-quality hybrids and varieties across various crops. The company recently reported a 14% revenue growth and more than a twofold increase in net profit in the second quarter.

Kaveri Seed Company Ltd Company Details

Established in 1976, Kaveri Seeds is a renowned Indian company that produces hybrid seeds for key crops. Their extensive product range includes high-yield seeds for various field crops like Maize, Cotton, Rice, Pearl Millet, Mustard, Wheat, Sorghum, Pulses, Bajra, and Sunflower.

The company collaborates with over 100,000 growers who cultivate crops on a vast expanse of 65,000 acres spread across 12 agro-climatic regions. This broad network enables Kaveri Seeds to provide seeds suited for various climatic and soil conditions, catering to diverse agricultural needs.

Kaveri Seed Company operates seven state-of-the-art processing facilities throughout India. Among these is a major facility capable of drying 2900 tonnes of maize cobs per cycle. The company also possesses ample storage facilities, including warehouses with ambient and cold storage options, totalling around 6 lakh square feet in space.

To support its research and development efforts, the company maintains several leased and owned research farms spanning over 500 acres. These farms have the necessary infrastructure to conduct extensive research trials under various biotic and abiotic conditions. Furthermore, Kaveri Seeds operates MLT outstations to evaluate and test their newly developed agricultural products.

Company Financials of  Kaveri Seed Company Ltd (In Rs Crore)

For the fiscal year ending March 31, 2023, Kaveri Seed Company Ltd reported a revenue growth of 11.27%, accompanied by a 26.74% increase in profit after tax (PAT), compared to the fiscal year ending March 31, 2022.

Important Details of Kaveri Seed Company Ltd Buyback 2024 

The Necessity of the Kaveri Seed Company Ltd Buyback 2024 

The buyback wil help Kaveri Seed company to return the surplus cash to its shareholders and increase the overall return. Moreover, the buyback will improve the return on equity through the distribution of cash and improving earnings per share by reducing the equity base. In the long term it will increase the shareholders value. This buyback will give option to the equity shareholders to cash out their investment or continue to remain invested. Other than this, the buy back will optimize the capital structure.

Lead managers for Kaveri Seed Company Ltd Buyback?

Lead managers of the Kaveri Seed Company Ltd Buyback are Bajaj Capital Limited.

How to Apply for Kaveri Seed Company Ltd Buyback?

Wait for the buyback to open for subscription, then click here to apply for the Kaveri Seed Company Ltd Buyback with Bigul.

How to Check Allotment Status?

The registrar for Kaveri Seed Company Ltd Buyback 2024 is Bigshare services private limited. You can check by clicking here.

FAQs

1. What is the Kaveri Seed Company Ltd Buyback 2024?

The Kaveri Seed Company Ltd Buyback 2024 is a program where the company plans to repurchase shares worth Rs 325 crore through a tender offer. The buyback price is Rs 725 per share, 9% higher than the current market level. It involves repurchasing up to 44.82 lakh shares, subject to market conditions.

2. When will the Kaveri Seed Company Ltd Buyback 2024 start?

The offers open on February 29, 2024 and will go on till March 6, 2024. The last date to buy the shares is February 22, 2024 and the record date is February 23, 2024.

3. What is the significance of the Kaveri Seed Company Ltd Buyback for shareholders?

The buyback represents a tax-efficient way to return cash to shareholders and can potentially enhance the value of the remaining shares. It also allows shareholders to sell back their shares at a premium.

4. How can I apply for the Kaveri Seed Company Ltd Buyback 2024?

Shareholders can apply for the Kaveri Seed Company Ltd Buyback 2024 once it opens for subscription. Once the buyback is officially open, the application can be made by clicking here.

5. How will the Kaveri Seed Company Ltd Buyback 2024 affect the company’s financials?

For the fiscal year ending March 31, 2023, Kaveri Seed Company Ltd reported a revenue growth of 11.27%, accompanied by a 26.74% increase in profit after tax (PAT), compared to the fiscal year ending March 31, 2022.

6. Who are the lead managers and registrars for the Kaveri Seed Company Ltd Buyback 2024?

The Kaveri Seed Company  Buyback 2024 lead managers are Bajaj Capital Limited and the registrar is Bigshare Services Private Limited.