CERA Sanitaryware Buyback 2024 vs Chaman Lal Setia Exports Buyback 2024

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.

The Buy-Back is being undertaken, inter-alia, for the following reasons:

1. The buyback will help the company to distribute surplus cash to its shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
2. The buyback is expected to improve return on equity through the distribution of cash and improve earnings per share by reducing the equity base; thereby increasing the long-term shareholder's value.
3. The buyback gives an option to the shareholders holding equity shares of the company, either to sell their equity shares and receive cash or not to sell their equity shares and get a resultant increase in their percentage shareholding, post the buyback offer, without additional investment.
4. The buyback, which is being implemented through the tender offer as prescribed under the buyback regulations, would involve a minimum reservation of 15% for small shareholders and allocation of a higher number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The company believes that this reservation for small shareholders would benefit many public shareholders, who would be classified as small shareholders.
   The buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the company.