Kaveri Seed Company Buyback 2024 vs Orbit Exports Buyback 2024

The Buyback is being undertaken by the company after taking into account the operational and strategic cash requirement for the medium term and for returning surplus funds to the members in an effective and efficient manner. The buyback is being undertaken for the following reasons:

1. The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares thereby, enhancing the overall return for them;
2. The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve the allocation of a number of shares as per their entitlement or 15% of the number of shares to be bought back, whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "Small Shareholders" as per Regulation 2(i)(n) of the SEBI Buyback Regulations
3. The buyback will help the company to improve the return on equity through the distribution of cash and improving earnings per share by a reduction in the equity base, thereby leading to a the long-term increase in the shareholder's value.
4. The buyback will give an option to the members holding equity shares of the company, who can choose to participate and get cash in lieu of equity shares to be accepted under the buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the buyback, without any additional investment.
5. Optimise the capital structure.

The Buyback is being undertaken for the following objectives:

1. Improve the valuation of the company and fair valuation of the share price.
2. Enhancing the overall return to shareholders in the long run.
3. Creating long-term value for shareholders.
4. Improving the fundamental ratios of the company.
5. Exit option to shareholders particularly small shareholders at a premium over market price.