Kaveri Seed Company Limited Buyback 2019

(i) The Kaveri saga began in 1976 with the founder G.V.Bhaskar Rao a science graduate with his wife G Vanaja Devi as co-founder establishing a small seed production facility in Gatla Narsingapur village of Andhra Pradesh. In continuance of this entrepreneurial voyage, the idea sprouted as Kaveri Seeds and the company was formally incorporated in the year 1986.

(ii) Currently, Kaveri is one of the fastest-growing seed company in India with a large network of over 15,000 distributors and dealers spread across the country. With over 700 employees and a strong product line of hybrids. The company is poised to go greater heights with its renewed focus on R&D and strong intent to invest in innovation by the management to deliver all brand promises. With one of the largest anthology of crop germplasm in the country, Kaveri’s draught and disease resistant as well as high yielding hybrid and varietal portfolio include Cotton, Corn, Rice, Jowar, Bajra, as well as vegetables such as Tomato, Okra, and gourds.

(iii) Year on year Kaveri has been making great and delivering results and have been strides in its aggressive growth journey by focusing on :

a) Maintaining strong relationships with the farmers as well as channel partners Delivering value to all stakeholders.

b) Exceeding customer expectations in quality, responsiveness, and delivery Upholding a commitment to corporate citizenship by way of handholding farmers Building and retaining a diverse pool of talented employees An aggressive R&D and research focus to incessantly deliver the best of science.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Nov 22 2019
Buyback Offer Amount: ₹ 196 Cr
Date of Board Meeting approving the proposal: Sep 24 2019
Date of Public Announcement: Sep 24 2019
Buyback Offer Size: 4.44%
Buyback Number of Shares: 28,00,000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 700 Per Equity Share

Details of Buyback:

KAVERI SEED COMPANY LTD.board of directors of the company at its meeting held today i.e. 24.09.2019 considered and approved the proposal for buyback of fully paid-up Equity Shares of the face value of Rs.2/-  not exceeding 28,00,000 Equity Shares (representing 4.44% of the total number of equity shares in the paid-up equity share capital of the Company) for an aggregate amount of Rs.196 Cr Only, of the total paid-up equity share capital and free reserves of the company as on March 31, 2019 (on a stand-alone and consolidated basis) at a price of Rs.700 on " Tender Basis". 

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Kaveri Seed Company Limited in demat or physical form as on record date on [ 22.11.2019] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ Not Announced ] by selling your shares through your broker on NSE or BSE. 3. Then on [ Not Announced ], the settlement will be done for accepted shares and unaccepted shares will be returned to your demat account

Profit from the buyback on the bases of acceptance Ratio:

Buy 285 Shares at CMP of Rs.547( 2,00,000/700=285)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,55,895 1,55,895 1,55,895 1,55,895
No. of Shares buyback 94 142 213 285
BuyBack Profit 14,382 21,726 32,589 43,605
Profit 9.22% 14% 20.9% 28%

Recommendation:

Review and Recommendation of Kaveri Seed Company Limited BuyBack from our side is: Rating: 4/10 Fair: 1-5 Good: 5-7 Excellent: 7-10

Registrar Contact Details:

Bigshare Services Pvt. Ltd. 306, Right-Wing, 3rd Floor Amrutha Ville, Hyderabad - 500082, Telangana Website: www.bigshareonline.com

Company Contact Details:

Kaveri Seed Company Limited 513-B, 5th Floor, Minerva Complex, S D Road, Secunderabad Andhra Pradesh - 500003 Website: www.kaveriseeds.in

    Any idea about AR of buy back in 2017-2018 & 2018-2019? Just want to know to have rough idea about expected AR of current buy back.

      Just a few days back stock was beaten to 460. The bump in price is due to buyback, AR of 10-15% does not mean much if the stock cannot sustain 500 plus levels post completion of buyback. This trade to buy just for buyback may not be profitable at current price.

    Anyone tried unlisted zone?? I want to buy some unlisted script but is it trusted ? Anyone share experiences

      Yes ! you can trust these people. My many friends has done trade with them. They are truly professional.

    You can start buying *1 Share* of Kaveri Seeds for buyback. CMP is 503 and bbprice is 700 so Rs. 200 (-brokerage) guaranteed profit.

      @Marketwizard, Can you explain why only 1 share ? Why shouldn’t i buy more ?

        Yes, you can buy more. However, this one share strategy works when there is large arbitration available between current market price and buyback price. The current market gap is 474 and the buyback price is 700. So if you have say 10 accounts, then buy 1 share from each account. In case 1 share is accepted, you will get a profit of 10*(226)=2260.

        Note:

        Please contact your broker and ask how much they charge brokerage for Buyback. For Zerdoha,

        ₹20 plus GST will be charged for buyback /takeover/delisting orders placed through Console.

        ₹100 plus GST will be charged for the orders placed manually.