CERA Sanitaryware Limited Buyback (CERA Sanitaryware Buyback 2024) Detail

Last date to be eligible to participate in buyback is August 14, 2024.

The CERA Sanitaryware Buyback 2024 is a Tender Offer.

The CERA Sanitaryware Buyback 2024 is being offered at Rs ₹12000 per share per equity share.

The record date for the CERA Sanitaryware Buyback 2024 is August 16, 2024.

The issue size of CERA Sanitaryware Buyback 2024 is of 108,333 equity shares at ₹12000 per share aggregating upto ₹130.00 Crores.

The Buyback is being undertaken for the following reasons:

1. The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares, thereby, enhancing the overall return to shareholders;
2. The Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve the allocation of the number of Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholders” as per Regulation 2(i) (n) of the Buyback Regulations;
3. The Buyback may help in improving its return on equity, by a reduction in the equity base, thereby leading to a long-term increase in shareholders’ value; and
4. The Buyback gives an option to the Eligible Shareholders to either (a) participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or (b) not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without any additional investment.

Letter of Offer

All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.

The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.

The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.

The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.

The CERA Sanitaryware Buyback 2024 offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.