KRBL Buyback 2023 vs Somany Ceramics Buyback 2023

The Buyback is being undertaken for the following reasons:

1. The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares thereby enhancing the overall return for them.

2. The Buyback is generally expected to improve return on equity through distribution of cash and improve earnings per share by reduction in the equity base of the Company, thereby leading to long term increase in shareholders' value.

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.