The shares of one of the top global giants in the Ceramic Industry gained 2 percent in the day’s trade after the company’s board of directors announced buyback of equity shares of the company at a premium of 28 percent from its last traded price for a total sum not exceeding Rs. 125 Crores.
At 3:18 p.m the shares of Somany Ceramics were trading at Rs. 658.55 per share, down 2.40 percent from its previous day close price and its market capitalization is Rs. 2,792 Crores.
As per the company’s filing, On October 26, 2023 the board of directors of Somany Ceramics Limited, considered and approved the proposal for buyback of fully paid up equity shares from the shareholders of the Company, as on record date, which will be decided subsequently, on a proportionate basis, through the tender offer route.
The price at which the equity shares will be bought back is Rs. 850 per share, it represents a premium of 28.93 percent from its closing price of Rs. 659.10 as on October 26,2023 and it is payable in cash, for an aggregate amount not exceeding Rs. 125 Crores.
The resultant Equity Shares to be bought back at the Buyback Offer Price shall not exceed 14,70,588 Equity Shares, representing 3.46 % of the total number of Equity Shares in the total paidup equity capital of the Company as on March 31, 2023.
The Buyback Offer Size represents 15.18 percent of the aggregate of the Company’s fully paid-up equity capital and 15.17 percent of the free reserves as per the latest standalone and consolidated audited financial statements of the Company respectively, for the year ended March 31, 2023
The company’s revenue grew 18.34 percent from Rs. 2,094.46 Crores in FY22 to Rs. 2,478.51 Crores in FY23, accompanied by decreasing profits of Rs. 88.69 Crores to Rs. 71.49 Crores.
It has reported a return on equity (ROE) of 8.86 percent and a return on capital employed (ROCE) of 10.75 percent, it is making decent returns on its equity and capital employed.
According to the latest shareholding data available for the September 2023 quarter, the company’s Promoters hold 54.78 percent stake, the Domestic Institutional Investors hold 23.65 percent and the Foreign Institutional Investors (FII) hold 1.45 percent.
Somany Ceramics Limited is engaged in manufacturing and trading of complete decor solutions, it has its products in categories such as ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, sanitary-ware, bath fittings etc.
Written by Bharath KS
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