Somany Ceramics Limited Buyback (Somany Ceramics Buyback 2023) Detail

Last date to be eligible to participate in buyback is December 14, 2023.

The Somany Ceramics Buyback 2023 is a Tender Offer.

The Somany Ceramics Buyback 2023 is being offered at Rs ₹850 per share per equity share.

The record date for the Somany Ceramics Buyback 2023 is December 15, 2023.

The issue size of Somany Ceramics Buyback 2023 is of 1,470,588 equity shares at ₹850 per share aggregating upto ₹125.00 Crores.

The Buyback of shares by the company is proposed to reward the equity shareholders by way of returning surplus funds which is excess of the requirements for ordinary capital expenditure and current investment plan, in an expedient, effective and cost-efficient manner. Below is the broad reason of the proposed buyback.

1. The company has no major capital expenditure/investment planned immediately. Hence surplus cash can be used to reward shareholders.
2. The buyback will help the company to do a fair distribution of Surplus cash to its equity shareholders broadly in proportion to their shareholding, resulting in enhancing the overall return to shareholders.
3. The buyback will help to optimize the capital structure, thereby reducing in Weighted Average Cost of Capital
4. The buyback will help in improving the financial ratios such return of equity, return on capital employed and earnings per share
5. The Buyback gives choice to the shareholders either to participate in the buyback and monetize their shareholding or not to participate in the buyback and get the resultant increase in their shareholdings of the company post-buyback, without additional investment.

Letter of Offer

All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.

The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.

The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.

The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.

The Somany Ceramics Buyback 2023 offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.