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Promoter entities of Kaveri Seed tender shares worth ₹969 million during the ₹1.96 billion buyback

In the last week of September 2019, Kaveri Seed announced a 2.8 million shares buyback at Rs.700 per share, amounting to Rs.1.96 billion. While the purpose of a buyback is to signal undervaluation, this one has mostly benefited the promoters who have tendered shares worth Rs. 969 million. This includes shares tendered by CMD GV Bhaskar Rao worth Rs.436.7 million. Post buyback, promoter holding has increased from 55.10% to 55.16%. The stock initially gained 5% to hit Rs.548 after the announcement, but ran out of steam and didn’t breach its 52-week high of Rs.623 reached in Februa

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