Secunderabad-based agriculture inputs manufacturer, Kaveri Seed (KSCL) has got listed at a premium of 20% to the issue price of Rs 170 per share at the National Stock Exchange (NSE). It experienced moderate reaction to its IPO of 4 million shares of par value of 10 each.
The share opened at a premium of Rs 34, at Rs 204 as against its issue price of Rs 170 each share. It touched an intraday high of Rs 234 and an intraday low of Rs 204. It currently trades at Rs 222. The total volume of shares traded is 213,570 at the NSE.

KSCL plans to set up the issue proceeds to support the expansion plans worth Rs 632.97 million. It comprises establishment of marketing offices and godowns, corn cob drying plants, bioengineering research lab and seed processing plant.

Additionally, it plans to get hold of farming area for R&D facilities, upgradation of subsisting seed processing plants and meeting up the working capital needs. The profits of these plans are projected to add to the financials of KSCL from November 2008 onwards.

Established in 1986, KSCL is involved in the business of manufacturing, processing and promotion of high-class crossbreed seeds for various crops including corn, sunflower, cotton, paddy, grain sorghum, etc. Recently the company forayed into micro-nutrients and bio-products. Additionally, the company develops non-hybrid seeds. The fabrication, processing and R&D facilities are situated in Andhra Pradesh and Karnataka.

KSCL delivered first-rate financial performance in fiscal 2007. The company registered significant growth of 3.63 times in earnings during fiscal 2007 as compared with the previous fiscal. It registered earnings of Rs 105.40 million in fiscal 2007, as compared to Rs 29.02 million in fiscal 2006.