Kaveri Seed board approves Rs 325-crore buyback plan at Rs 725/share

Agricultural products maker Kaveri Seed Company's board on Friday approved a share buyback plan worth Rs 325 crore through the tender offer route. Kaveri Seed (KSCL) shares built on the day's gains after the earnings announcement, rising by as much as Rs 20.1, or 3.1 per cent, to Rs 675 apiece on BSE.

The stock came within Rs 16.5 of a 52-week high touched in October last year. 

 The board set the price at Rs 725 per share, translating into a premium of 10.7 per cent over the previous close.

The buyback offer is subject to shareholder and regulatory approvals.

As per the buyback plan, the company plans to buy back up to 44,82,758 equity shares, representing 8.01 per cent of the company's paid-up equity capital, as of March 31, 2023. 

The maximum buyback size represents 8.01 per cent and 4.01 per cent of the aggregate of the company's paid-up capital and free reserves based on its audited standalone and consolidated financial statements, as of March 31, 2023, respectively, Kaveri Seed Company added. 

(This story will be updated shortly)