Somany Ceramics Limited Buyback 2023

Somany Ceramics Limited (SCL) is among the top 15 global giants of the Ceramic Industry. Founded in 1968 and Established more than 50 years ago by Late Shri Hiralal Somany Ji, Brand SOMANY, under the capable leadership of Mr. Shreekant Somany, Chairman & Managing Director and Mr. Abhishek Somany, Managing Director & CEO, is a household name in India for tiles and bathware. Moreover, it exports its products to over 55 countries across six continents. The company is a complete solution provider in decor solutions with the widest product selection in all categories: ceramic (wall and floor tiles), polished vitrified tiles, glazed vitrified tiles, sanitary ware and bath fittings.

SOMANY Ceramics Limited is committed to continually strengthening its export capabilities, offering an unparalleled assortment of Wall Tiles, Floor Tiles, Sanitaryware, and Bath Fittings. With a market presence that extends from Europe and the Middle East to Asia and Africa, SOMANY stands as a global powerhouse and an unrivaled leader in its industry

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 125 Cr
Date of Board Meeting approving the proposal: Oct 26 2023
Date of Public Announcement: Oct 26 2023
Buyback Offer Size: 3.46%
Buyback Number of Shares: 14,70,588
Price Type: Tender Offer
FV: 2
Buyback Price: ₹ 850 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 14,70,588 (Fourteen Lakh Seventy Thousand Five Hundred Eighty-Eight) equity shares of the Company (representing 3.46% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 850/- (Indian Rupees Eight Hundred and Fifty only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 125 Crore (Indian Rupees One Hundred and Twenty Five Crores only).

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 1,715 1,610 1,651 2,095 2,479
Expenses + 1,550 1,477 1,460 1,888 2,290
Operating Profit 165 133 191 207 189
OPM % 10% 8% 12% 10% 8%
Other Income + 5 -15 -7 13 13
Interest 46 49 40 30 40
Depreciation 44 59 62 64 68
Profit before tax 80 10 83 126 93
Tax % 34% -104% 27% 26% 28%
Net Profit + 53 20 61 93 67
EPS in Rs 10.93 3.54 13.45 20.88 16.83
Dividend Payout % 18% 57% 18% 14% 18%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  Somany Ceramics Limited in Demat or physical form as on the record date [To Be Updated].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To Be Updated] by selling your shares through your broker on NSE or BSE.
3. Then on [To be Updated], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 235 Shares at CPM of Rs. 667 (2,00,000/850)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,56,745 1,56,745 1,56,745 1,56,745
No. of Shares Buyback 77 117 176 235
Buyback Profit 14,091 21,411 32,208 43,005
Profit% 8.99% 13.66% 20.55% 27.44%


        I hope it is as late as possible, so I am able to realise LTCG on shares i bought in December last year.

          It doesn’t matter at all, because the proceedings of the Buyback are TAX FREE in the hands of the Investor. As per Section 115QA, You don’t have to pay even a single Paisa as TAX. The companies will pay the TAX.

    Is there any prescribed time limit during which a company announces buyback dates after board meeting

    Sumit ji,
    I pray for your kind n precious views on this buyback. Your valuable views matter more to me. Please do share your opinion. Thank you.

      Purchased 219 shares @ Rs.662.05 with a hope that this buyback will give reasonable returns.

      Missing you dear Sumit ji. Thanks for the guidance of the recent past. Wish you and all worthy and adorable friends ,happy and prosperous Diwali .

    Buyback approved. Tender offer @ Rs 850 per share. 125 crore buyback. decent size from my view.

      Rohit bhai

      If you have studied the company
      Please share your views in detail

      How is it fundamentally, that is the most pertinent question, any corporate governance issues

      From financial standpoints
      Revenue is growing
      Looks fine

      Brand is also well known in delhi NCR region

      The 1 problem I see with this business is that even HNI go with non branded tiles in fair no of cases
      Middle. Income/upper middle mostly go for non-branded tiles (90%)

      That is why I stayed away from kajaria doubting their ability to penetrate the masses the same way electrical switc or wire companies were able to

        I have not done any financial analysis of the company. I only trade for buyback and exit from stock once buyback is over (whether in profit or loss). I suggest you the same.

      Good to see your valuable comment Rohit ji after a long time. Hope many more buybacks are coming up.

        Thanks for your message, Gopi 🙂 I think the ER will be somewhere around 15% and hoping for 25-30% AR. It mostly depends on the actual price during the tender period. Although I have already bough around Rs 3 lakh shares and will buy another 1 lakh if the share falls another 5%.

      Rohit Ji,
      has promoters shown inclination to participate in BUYBACK?
      when is tentative record date?

        Hi Jimmy,
        We will be able to find this out after the Postal Ballot or with the letter of offer.

      Hi friends, any idea when the ex-buyback date will be ? Is it possible it will be in December or later ?

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