Cera Sanitaryware shares rise 5% in a sinking market, here's why 

Shares of Cera Sanitaryware surged over 5% amid a big crash in Sensex and Nifty on a rout in global markets today. The rally in the stock came after board of the firm announced a buyback of shares via the tender offer route. 

Cera Sanitaryware stock rose 5.14% to Rs 9384.95 in the afternoon session against the previous close of Rs 8925.45 on BSE. Market cap of the sanitaryware firm climbed to Rs 12,134 crore. 

The board of the firm approved a buyback of shares worth Rs 130 crore. The firm will buy back 1,08,333 shares (0.83% stake) of face value Rs 5 each. The buyback of the shares will be carried out at Rs 12,000 per share.

The board has fixed Friday, August 16, 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.

Total 4066 shares of the firm changed hands amounting to a turnover of Rs 3.71 crore. The stock fell to a 52-week low of Rs 6551.25 on March 20, 2024 and a 52 week high of Rs 9782.25 on September 1, 2023. 

Cera Sanitaryware stock has a beta of 0.3, indicating low volatility in year.

The Cera stock is trading neither in the overbought nor in the oversold zone, signals its relative strength index (RSI) which stands at 54.7. Cera Sanitaryware shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. 

"The board of the companyb has approved the the proposal for buyback of up to 1,08,333 fully paid-up equity shares of face value Rs 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),"  said the sanitaryware firm in a communication to BSE. 

Cera Sanitaryware is engaged in the business of manufacturing, selling, and trading of building products. Its products and services include sanitaryware, faucets ware, tiles, bathroom accessories and allied products.