Kaveri Seed Share Buyback: Kaveri Seed Company on Thursday said its board has approved the proposal for the buyback of the company’s shares having a face value of 2 each, for an aggregate amount of Rs 125.65 crore. The maximum number of equity shares proposed to be bought back, at a maximum price not exceeding Rs 700 per share, will be 17,95,000 equity shares, which is about 3.08 per cent of the company’s paid-up shares as of March 31, 2022.
If the equity shares are bought back at a price below the maximum buyback price, the actual number of shares bought back could exceed 17,95,000 but will always be subject to the maximum buyback size and will also be not more than 25 per cent of the total number of equity shares in the paid-up equity capital of the company as of March 31, 2022, Kaveri Seed Company said in a BSE filing.
Kaveri Seed is India’s largest agriculture company specialising in hybrid seeds in key Indian crops.
Through share buyback, a company purchases its own shares from its existing shareholders. A company may do this to boost the value of its stock and to improve the financial statements.
“The board of directors of Kave Seed Company Limited at its meeting today (October 27) considered and approved the proposal for the buyback of the company’s fully-paid equity shales having a face value of Rs 2 each, for an aggregate amount not exceeding Rs 125,65,00,000, excluding any expenses incurred or to be incurred for the buyback viz. brokerage, costs, feet 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 and at a price not exceeding Rs 7OO per equity share payable in cash from its shareholders/beneficial owners from the open market,” according to the BSE filing.
Kaveri Seed said the maximum buyback size represents 9.85 per cent and 9.68 per cent of the aggregate of the total paid-up capital and free reserves of the company based on the audited standalone and consolidated financial statement of the company as of March 31, 2022, respectively.
The company said, “The public announcement setting out details of buyback including the process, timelines and other statutory details of the buyback will be released in accordance with the buyback regulations.”
Kaveri Seed Company’s shares on Thursday were up by 5.85 per cent, or Rs 26.75, to close at Rs 483.7 apiece on the BSE.
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