Kaveri Seed Company share price added a percent on August 26 intraday, a day after the company approved buyback of shares.
The company's board approved a proposal to buyback equity shares worth up to Rs 120 crore. It proposes to buyback shares at maximum price of Rs 850 each.
The indicative maximum number of equity shares proposed to be bought back at the maximum buyback size and maximum buyback would be 14,11,780 equity shares, which represent approximately 2.34 percent of the paid up shares of the company.
The stock was trading at Rs 589.10, up Rs 10.30, or 1.78 percent at 12:05 hours. It touched an intraday high of Rs 596.00 and an intraday low of Rs 582.
The company said it will utilise at least 50 percent of the amount earmarked as the maximum buyback size for the buyback amounting to Rs 60,00,06,500. Based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 7,05,890 equity shares.
Mithun Chand, Executive Director of Kaveri Seed Company in an interview to CNBC-TV18 said that the company is looking for inorganic opportunities due to the cash in the balance sheet.
"Promoters will not participate in the buyback. The firm is looking at R&D programme or technology tie-up in inorganic opportunity," he said.