Kaveri Seed Company Limited Buyback 2021

(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: Open Market
Buyback Offer Amount: ₹ 120 Cr
Date of Board Meeting approving the proposal: Aug 25 2021
Date of Public Announcement: Aug 25 2021
Buyback Offer Size: 11.47%
Buyback Number of Shares: 14,11,780
Price Type: Open Market
FV: 2
Buyback Price: ₹ 850 Per Equity Share

Details of Buyback:

KAVERI SEED COMPANY LTD.board of directors of the company at its meeting held on i.e. 25.08.2021 considered and approved the proposal for buyback of fully paid-up Equity Shares of the face value of Rs.2/-  not exceeding 14,11,780 Equity Shares (representing 11.67% of the total number of equity shares in the paid-up equity share capital of the Company) for an aggregate amount of Rs.120 Cr Only, of the total paid-up equity share capital and free reserves of the company as on March 31, 2021 (on a stand-alone and consolidated basis) at a price of Rs.850  on " Ope offer Basis"

Salient financial parameters:

Particulars(cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021
Sales + 818 808 929 1,036
Expenses + 597 596 676 738
Operating Profit 222 212 253 298
OPM % 27% 26% 27% 29%
Other Income 24 43 46 46
Interest 1 1 0 1
Depreciation 25 23 26 22
Profit before tax 220 231 273 321
Tax % 4% 6% 5% 3%
Net Profit 211 217 259 310
EPS in Rs 31.96 34.45 42.94 51.47

How to Participate in buyback?

No arbitrage is available.

Profit from the buyback on the bases of acceptance Ratio:

No arbitrage is available.


No arbitrage is available.

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