Small-Cap Stock Announces Record Date For Rs 125 Cr Share Buyback: Do You Own?

With a market valuation of over Rs 3000 Cr, Somany Ceramics is a small-cap consumer discretionary company. Among the top 15 worldwide titans in the ceramics industry is Somany Ceramics Limited (SCL). It was founded in 1968, making it more than 50 years old. With the largest product variety across all categories-ceramic (wall and floor tiles), polished vitrified tiles, glazed vitrified tiles, sanitary ware, and bath fittings-the firm offers comprehensive décor solutions. Market observers should be aware of the record date that the company has specified for the purpose of the Rs 125 Cr share buyback.

"This is in reference to our earlier letter dated October 26, 2023, informing the stock exchanges that the Board of Directors have approved the Buyback of equity shares by the Company. The members of the Company have approved the Buyback by passing a Special Resolution through postal ballot. Kindly refer to our letter dated December 04, 2023 intimating the results of the postal ballot.

Pursuant to Regulation 42 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Regulation 9(i) of Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended, the Company has fixed Friday, December 15, 2023, as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who shall be eligible to participate in the buyback," said Somany Ceramics in a stock exchange filing.

A share buyback of Rs 850 per equity share was approved by the company's board of directors for an aggregate amount of up to Rs 125 crore. The buyback offer price represents a 17.40% premium over the current trading price of Rs 724 per share on BSE. According to the latest standalone and consolidated audited financial statements of the company, the buyback offer size reflects 15.18 percent of the total fully paid-up equity capital and 15.17 per cent of the free reserves for the financial year ended March 31, 2023.

Somany Ceramics reported a consolidated net profit rise of 152.61% for the quarter that ended on September 30, 2023. According to a BSE filing, the company's profit after tax for the second quarter of FY24 was Rs 29.53 crore, up from Rs 11.69 crore in the same quarter of the previous fiscal year. Net consolidated total income for the firm increased by 6.18 per cent to Rs 659 crore in Q2 FY24 from Rs 620.67 crore in Q2 FY23. Its total outstanding debt was Rs 328 crore as of September 30, 2023.

On Wednesday, the shares of Somany Ceramics were trading 3.71% higher at Rs 722.50 apiece on BSE. The scrip reached a 52-week-high of Rs 818.00 on (12/07/2023) and a 52-week-low of Rs 445.40 on (23/12/2022).