The difference of 400 crores would shrink by another 175 cr after accounting for 20% buyback tax + surcharge/cess on 4 of the 6 buybacks.
Maize boosted by ethanol demand is a big positive.
BT 3 – cotton seed price control’s by government need to be removed as well to enable entry of BT 3 cotton seeds. Whenever that happens, it would be positive – but very low probability with wafer thin majority government for next 5 years – same government buckled down in front of farmer agitation when there was comfortable majority.
Advanta seeds – value unlocking may lead to value unlocking for Kaveri seeds. The very low valuations of Kaveri Seed will tend to stand out vs the valuations for Advanta in an IPO as most IPO’s are happening at mind boggling valuations. KKR owns 13.3% stake in seeds platform of UPL – paid 2,460 crores in Oct-2022 (Making then equity value of Advanta at 18,450 crore).
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