Cera Sanitaryware buyback record date today. Price, size, acceptance ratio, other details. Should you participate?

Cera Sanitaryware buyback news: The record date for the buyback of shares by Cera Sanitaryware Ltd is today. So, those who have bought Cera Sanitaryware shares till 14th August 2024 and hold the scrip after the close of the Indian stock market on Friday would be eligible to tender their shares and participate in the Cera buyback offer. The company has declared a buyback price of ₹12,000 per share, and Cera's buyback size is around ₹130 crore. Today, Cera's share price is around ₹9,980 apiece on the NSE, meaning Cera's buyback is available at a premium of over 20 per cent.

Cera Sanitaryware buyback of shares

The company informed Indian stock market exchanges about Cera Sanitaryware buyback record date saying, "We wish to inform you that the Board of Directors of the Company ("Board"), at its meeting held today, i.e., Monday, 5th August, 2024 has inter-alia, approved, the proposal for buyback of up to 108333 fully paid-up equity shares of face value INR 5 each ("Equity Shares") by the Company ("Buyback"), representing upto 0.83% of the total number of Equity Shares of the Company, at a price of INR 12000/- (Rupees Twelve Thousand only) ("Buyback Price") per equity share payable at cash for a total consideration not exceeding INR 130 Crores (Rupees One Hundred Thirty Crores only) (excluding the transaction costs such as brokerage, filing fees, advisors fees, legal fees, public announcement publication expenses, printing, applicable taxes such as buyback tax, securities transaction tax stamp duty etc.) ("Buyback Size"), representing 9.68% and 9.66% of the total paid-up equity share capital and free reserves (including securities premium account) as per the latest audited standalone financial statements and audited consolidated financial statements of the Company for the financial year ended March 31, 2024, respectively through the "Tender Offer" route as prescribed under the Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 as amended ("Buyback Regulations"), on a proportionate basis from the equity shareholders/ beneficial owners of the Equity Shares of the Company including promoters, members of promoter group, and persons acting in concert, as on the record date."

"Pursuant to Regulation 42 of the Listing Regulation and Regulation 9(i) of the Buyback Regulations, as amended, the Board has fixed Friday, 16th August, 2024 as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the Buyback," the company added.

Cera Sanitaryware buyback: Top 5 details

1] Cera Sanitaryware buyback price: The company has declared a buyback of shares at ₹12,000 per share.

2] Cera Sanitaryware buyback record date: The record date for the buyback of shares has been fixed at 16 August 2024, which means the stock is trading ex-buyback today.

3] Cera Sanitaryware buyback size: The company aims to spend up to ₹130 crore on its offer.

4] Cera Sanitaryware buyback acceptance ratio: Due to its smaller size and high interest among the shareholders, experts expect a lower acceptance ratio in this buyback offer.

5] Cera Sanitaryware buyback entitlement: Those who buy Cera shares on or before 14 August 2024 and hold them after the market closes on 16 August 2024 will be entitled to participate in this buyback of shares offered by Cera Sanitaryware Limited.

Cera Sanitaryware buyback: Should you participate?

Advising Cera shareholders to participate in this buyback of shares offered by the company, Akriti Mehrotra, Research Analyst at StoxBox, said, “Given that the share buyback of Cera Sanitaryware is at a premium of about 20 percent to Wednesday's closing price and the proposed changes in taxation, we advise investors to tender shares in the buyback programme. With the tender size relatively smaller at ₹130 crores and strong investor interest, we expect the acceptance ratio to be lower. We believe that the company's prospects remain strong because of its strong positioning in the sanitaryware market, large distribution network, expected demand improvement in future, strong return ratios and balance sheet strength. Hence, investors can continue to hold shares that are not accepted after the tender in the share buyback programme.”

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.