Kaveri Seed Company Ltd Board approves Buy-back of Equity Shares

The board of directors of Kaveri Seed Company Limited (the "Company") at its meeting today considered and approved the proposal for the buyback of the Company's fully-paid equity shares having a face value of Rs. 2/- each ("Equity Shares"), for an aggregate amount not exceeding Rs. 120,00,13,000/- (Indian Rupees One Hundred Twenty Crores and Thirteen Thousand Only) excluding any expenses incurred or to be incurred for the Buyback viz. brokerage, costs, fees, 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 ("Maximum Buyback Size") and at a price not exceeding Rs. 850/- (Indian Rupees Eight Hundred and Fifty Only) Per Equity Share ("Maximum Buyback Price"), payable in cash, from its shareholders / beneficial owners (other than those who are promoters, members of the Promoter group or Persons in control), from the open market through stock exchange mechanism i.e., using the electronic trading facilities of the stock exchanges where the equity shares of the Company are listed i.e., National Stock Exchange of India Limited and BSE Limited, in accordance with the Provisions of the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended ("SEBI Buyback Regulations") and the Companies Act, 2013 and the rules made thereunder, each as amended from time to time ("Companies Act") (the Process being referred hereinafter As "Buyback").

The indicative maximum number of Equity Shares Proposed to be bought back at the Maximum Buyback Size and Maximum Buyback Price under the Buyback would be 14,11,780 (Fourteen Lakhs Eleven Thousand Seven Hundred and Eighty Only) Equity Shares ('Maximum Buyback Shares'). If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the indicative Maximum Buyback Shares (assuming full deployment of the Maximum Buyback Size) but wil1 always be subject to the Maximum Buyback Size and will also be not more than 25% of the total number of Equity Shares in the paid-up equity capital of the Company as of March 31, 2021.

The Maximum Buyback Size represents 9.70% and 9.56% 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, 2021, respectively (being the latest available audited financial statements of the Company).

At the Maximum Buyback Price and the Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 14,11,780 Equity Shares ("Maximum Buyback Shares"), which represent approximately 2.34% of the paid up shares of the Company as of 31st March, 2021. If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the Maximum Buyback Shares, but will always be subject to the Maximum Buyback Size. The Company shall utilise at least 50% of the amount earmarked as the Maximum Buyback Size for the Buyback i.e. Rs. 60,00,06,500/- (Rupees Sixty Crores and Six Thousand Five Hundred Only) ("Minimum Buyback Size"). Based on the Minimum Buyback Size and Maximum Buyback Price, the Company would Purchase a minimum of 205,890 Equity Shares.

Shares of Kaveri Seed Company Ltd was last trading in BSE at Rs. 579.4 as compared to the previous close of Rs. 562.25. The total number of shares traded during the day was 32903 in over 1764 trades.

The stock hit an intraday high of Rs. 584.9 and intraday low of 557.75. The net turnover during the day was Rs. 18774852.

Source : Equity Bulls

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