Kaveri Seed Company Limited (BSE:532899) announces a share repurchase program. Under the offer, the company will repurchase up to 4,482,758 shares, representing 8.02% of its share capital, for total worth of INR 3,250 million. The shares will be repurchased at a price not exceeding INR 725 per share.

The purpose of the offer is to return surplus funds to the shareholders thereby enhancing the overall return to the shareholders, to improve financial ratios like return on equity and earning per share, to provide an option to the shareholders to either participate in the buyback and get cash in lieu of their shares or not participate in the buyback and enjoy an increase in their percentage shareholding post the buyback, without additional investment and to optimize capital structure. The program will be funded out of free reserves, securities premium of the Company and any other source as may be permitted by the Buyback Regulations or the Act. The offer is subject to the approval of the shareholders by way of a special resolution through the postal ballot.

The company has set February 23, 2024, as the record date of the offer. The offer is valid till March 6, 2024. As of December 29, 2023, the company had 55,921,829 shares in issue.