Monsanto India took a beating on Monday as market expectations of a buy-back price of Rs 675-700 were belied.

The scrip fell to its 10% lower deck of Rs 508.95 on BSE by 10:45 IST. A total of 1,739 Monsanto India shares were traded on BSE by then. At that level, the outstanding sell position was at 535 shares. In the four sessions between 17 and 25 April 2003, Monsanto India jumped 19.04% to Rs 565.45 from Rs 475 on expectations over a benevolent buy-back price.

Market players were expecting a price of around Rs 675-700 per share. They are now a disappointed lot, what with the company announcing a buy-back price of Rs 575 per share.

After market hours Friday, MIL's board of directors approved the proposal to buy-back 3,28,478 equity shares at a maximum price of Rs 575 per share for an aggregate amount not exceeding Rs 18.88 crore. The buy-back will be made through open market operations.

For Q3 ended 31 December 2002, MIL's sales were flat at Rs 131.13 crore (Rs 1/31 billion), compared to Rs 131.96 crore (Rs 1.31 billion) in Q3 ended 31 December 2001. Other income galloped by 128% to Rs 1.67 crore from Rs 0.73 crore. Net profit, as a result, jumped by 68% to Rs 30.96 crore from Rs 18.33 crore.

MIL's fortunes are directly linked to agricultural production and the monsoon. The company manufactures and markets agricultural and industrial chemicals. It pioneered the chemical weed control concept in India and is a leader in rice herbicides, marketed under the Machete brand. The company also markets Avadex - a herbicide used on wheat crops.

MIL, earlier known as Monsanto Chemicals of India, is a subsidiary of Monsanto Company (now known as Pharmacia Corporation), USA. The company was incorporated in 1949. In 1989, it offered shares to the Indian public to reduce foreign equity holding and to diversify operations.

As on 31 December 2002, promoters held 72% stake in MIL, while the public and institutions held 23.57% and 0.67% respectively.