Kaveri Seed Company Limited Buyback 2022

(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: ₹ 125.65 Cr
Date of Board Meeting approving the proposal: Oct 27 2022
Date of Public Announcement: Oct 27 2022
Buyback Offer Size: 3.08%
Buyback Number of Shares: 1795000
Price Type: Open Market
FV: 2
Buyback Price: ₹ 700 Per Equity Share

Details of Buyback:

The meeting has approved the proposal for buyback of fully paid up equity shares of the Company having a face value of INR 2/- (“Equity Shares” and such buyback “Buyback”) from all sharehThe board of directors of Kaveri Seed Company Limited Buyback 2022 at its olders/ beneficial owners of the Equity Shares of the Company, as on record date of ( to be uploaded), through the “tender offer” route, at a price of INR 700/- for an aggregate amount not exceeding INR 125.65 Cr/.

Salient financial parameters:

Particulars(cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales + 818 808 929 1,036 913
Expenses + 597 596 676 738 718
Operating Profit 222 212 253 298 195
OPM % 27% 26% 27% 29% 21%
Other Income 24 43 46 46 44
Interest 1 1 0 1 0
Depreciation 25 23 26 22 20
Profit before tax 220 231 273 321 218
Tax % 4% 6% 5% 3% 4%
Net Profit 211 217 259 310 209
EPS in Rs 31.96 34.45 42.94 51.47 35.82

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market.
Example: “Kaveri Seeds ” announces buyback plan of its shares up to value of Rs 700, it means that the company will be purchasing shares of "Kaveri Seeds " from the open market at a price not exceeding Rs.700 per share.
Scenario 1- If the share price is below Rs. 700 in that case, the company will put buy order at Current Market Price and purchase shares.
Scenario 2- If the share price is above Rs. 700, in that case, the company will put buy order at Rs. 700 only and if someone is ready to sell at Rs.700 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

NA as it is open market buyback


NA as it is open market buyback


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