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:
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% |
27 Comments
Leave a Reply
You must be logged in to post a comment.
Will 1 buyback strategy work here ???
Yes, of course.
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
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.
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 ?