New Delhi: Shares of Kaveri Seed surged almost 4% on both the equity indices after the board of directors of the company approved buyback shares on Tuesday post market hours.
At 10 am, the stock was trading at ₹568.80 up 3.91% on BSE, while on NSE, the stock was trading 3.73%.
The company on Tuesday had approved buyback up to 2.8 million shares, representing 4.44% of equity shares aggregating to ₹196 crore on proportionate basis though tender offer route. The buyback price is set at ₹700 per share. The promoters intend to participate in the proposed share buyback.
"We hereby inform that the Board of Directors of the Company, at its meeting held today i.e., September 24, 2019 have considered and approved the proposal for buyback of fully paid up Equity Shares of face value of ₹2/- (Rupee Two only) each ("Equity Shares"), 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 not exceeding ₹196.00.00,00 only," the company said in a regulatory filing on Tuesday.
During the pre-opening session, the stock went up 4.13% at ₹570 on BSE. Shares of Kaveri Seed had touched its 52-week high of ₹624.85 on 28 September 2018. However, on its 52-week low was at ₹376 touched on 20 February 2019.
The company had earlier informed that as per the "lnsider Trading Code" of the company, the "Trading Window" of the company will remain closed for all designated persons including promoters, directors, key managerial personnel and designated employees of the company from 17 September 2019 to 26 September 2019.
For the quarter ended June 30, 2019, Kaveri Seeds reported a revenue of ₹660 crore as against ₹599 crore in the same period, the last financial year. The profit after tax (PAT) stood at ₹229 crore in the quarter as against ₹210 crore in the comparable quarter last year.
