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 Record Date: | Dec 15 2023 |
| Buyback Opening Date: | Dec 21 2023 |
| Buyback Closing Date: | Dec 28 2023 |
| 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:
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?
Profit from the buyback on the bases of acceptance Ratio:
| 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% |
72 Comments
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Daer Friends,
Good news recd. message from HDFC Securities that 94 sold out of 216 shares I>E> 43.5% .
Hello….any idea what is the participation statistics? Any idea AR %?
26/60 Accepted 44% approximately
This is good, i am yet to get any confirmation. I am having account with Zerodha. Is others getting it earlier?
Received 6 / 15 shares
What is likely to be Acceptance Ratio AR
As per seniors in the group mentioned AR would be around 35%
Have all shareholders received the entitlement email ? Can you please share which email id it came from ? I am yet to receive it.
No, not yet. I have just sent email to Registrar asking for the same.
Please check the Spam or Junk folder. It was in in Spam folder in my gmail.
Thanks. Found it in the spam folder.
Sir, Please write to mdpldc@yahoo.com with your demat account details. I got reply from them with my entitlement ratio.
Receiving email is not very important. One can tender all the shares held on the record date for buyback.
Yes. It was in spam.
Just got a mail ER is about 17%, I have got a mail for Entitlement of 44 out of 260 shares
Based on this, any idea what could be the AR?
I presume the AR to be around 35%
Thanks Gopi
What email id was it sent from , please ? I haven’t received any email yet, though I held shares on the record date.
Got from this email sclbb2023@mdplcorporate.com
Sub: Somany Ceramics Limited – Offer to Buyback
Gopi, Rohit, I see many of you have booked decent profit but I didn’t check update and brought at 754 on last day! Hope I make some profits
Sri ji,I sincerely wish you good luck. The chance of getting profit is dependent on the AR and the price at which you can sell the returned shares post buyback. Somany is a quality stock and if I were in,I would have been holding the returned shares to sell later at a gain. Hope you make some gain in the end.
Thanks for your input Gopi
Sold all the holdings @ 759
Brilliant.Thank you for the invitation, Rohit ji. I am also selling.
Thank you Rohit. Even I sold all shares @569.5 except 1 share.
Typo @759.5
Rohit ji,
Logic behind selling ex date. Are you expecting less AR. Another 15 days tax free profit would be received.
Throw some light!
I was making a decent profit of around 12% so I think it is better to exit rather than applying in buyback and then sold the remaining share in open market.
Now a days Buyback record date and Ex-date are same? like in this case 15th is ex-date as well as record date, this is how its always?
The last day to buy this stock for buyback is 14/12/23 as 15th is the record date.
Thanks Gopi
Hi Gopi, is Somany Ceramics, still good to buy and participate in buyback? It has almost run up 12% in last one week or so. Pls suggest
Thank you Sri ji for the faith shown. My humble response to your query is neither yes nor no .
Thanks Gopi Ji for your response…. i will wait and check for next 2 days and decide
Is it better to take guaranteed profit on all shares or tender in buyback and take risk that unaccepted shares will fall in value and offset buyback profit ? Your thoughts please.
It’s depends on how much profit you are sitting. Definitely buyback profit is with out taxes. Chances are that little price correction will be there after record date and submission. In long term it recovers…, so if you are going to hold more than 6 months after buyback, buyback is better. In this case booking profit is also a good option if profit is already more than as 14-15% expected AR is around 50%
Somany Ceramics record date 15th Dec 2023
The postal ballot meeting regarding the approval for the buyback of fully paid-up equity shares of the Company was concluded on Dec 4th. Buyback dates will be announced soon.
Good to know. The problem is there is hardly any other good buyback option after this one. How to pass time and utilize the released funds is the worry.
Hi Gopi, is Somany Ceramics, still good to buy and participate in buyback? It has almost run up 12% in last one week or so. Pls suggest
Will 1 buyback strategy work here ???
Yes, of course.
What is meant by 1 buyback strategy Hemang and Gopi brother, pls explain or give any url or link for that.
It means you just tender one number of share you held on the record date for buyback and the same will mostly be accepted. Good where there is substantial difference between the prices
Any idea on approximate record Date?
In December.
First or second week may be.
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.
My shares are worth more than 2 lakhs now, so I have to sell some to get back into the retail category. Capital gains from those sales in the open market will be taxable.
yes, correct
Profit on buyback is not taxable stcg or ltcg
It’s depends on how much profit you are sitting. Definitely buyback profit is with out taxes. Chances are that little price correction will be there after record date and submission. In long term it recovers…, so if you are going to hold more than 6 months after buyback, buyback is better. In this case booking profit is also a good option if profit is already more than as 14-15% expected AR is around 50%
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.
Purchased 61 more shares today @ Rs. 656.20
I too miss him .
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 .
Thanks, Rohit ji. Bought 100 today.
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.
Hello Rohit ji,
Any idea on wether promoters will be participating in buyback or not.
First time buy back. Very small company.
Is any buy back history of somany
Hi friends, any idea when the ex-buyback date will be ? Is it possible it will be in December or later ?