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Kaveri Seeds shares jump over 5% after board approves buyback plan

BusinessToday.In     September 25, 2019

Shares of Kaveri Seeds surged 5.20% on both the exchanges on Wednesday, after the board of directors of the company approved share buyback plan. The announcement was made after market hours yesterday, 24 September 2019.

"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 Rs 2 each , 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 Rs 196 cr only," the company said in a regulatory filing.

"The Buyback Offer Size represents 20.01% and 20.74% of the aggtegate of the fully paid-upequity capital and free reserves," the filing added.  The buyback price is set at Rs 700 per share. As per the filing, the promoters intend to participate in the proposed share buyback.

Reacting to the latest developement, shares of Kaveri Seeds formed a gap up chart pattern at the opening bell to start the day trade at Rs 572.20, registering 4.5% rise against the previous close of Rs 547.40 on BSE. Later the KSCL stock rose 5.20% to touch an intraday high of Rs 575.8 on BSE, a new monthly high. The share has gained almost 7% in the last 3 days of trade.

Additionally, Kaveri Seed share is trading higher than 5, 20, 50, 100 and 200-day moving averages. The KSCL stock has hit a high of Rs 575.80 and a low of Rs 561 on BSE so far during the day.

The KSCL stock is trading in-line with the trend in the 'Agri-Seeds' sector, which has gained by 2.16% on BSE so far. Overall 0.36 lakh shares and 4.73 lakh shares currently change hands in BSE and NSE, both above the 5, 10, 30-day average volume traded.

As of 1215IST, the share price of Kaveri Seeds is quoting Rs 563 on BSE, at 2.83% gain.

By Rupa Burman Roy

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