Somany Ceramics board approves Rs 125-crore share buyback; stock trading in red

Shares of Somany Ceramics Ltd were trading lower even as board of the company approved a share buyback at Rs 850 per equity share. The share buyback is worth Rs 125 crore.The buyback price is at a premium of 26.27% to the previous close of Rs 673.15 on BSE. Somany Ceramics shares were trading 1.66% lower at Rs 661.95 against the previous close of Rs 673.15 on BSE.

Somany Ceramics stock opened higher at Rs 675.05 on BSE. Total 9539 shares of the firm changed hands amounting to a turnover of Rs 63.41 lakh. Market cap of the firm slipped to Rs 2811.58 crore on BSE.

The stock is neither oversold nor overbought on technical charts with its relative strength index (RSI) at 40. It had low volatility of 0.5 in a year. Somany Ceramics shares have zoomed 38% this year and risen 22.37% in the last one year.

Somany Ceramics shares are trading lower than 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but higher than the 150 day and 200 day moving averages.

The ceramics stock hit a 52-week high of Rs 818 on July 12, 2023 and a 52-week low of Rs 445.40 on December 23, 2022.

The Buyback Offer Size represents 15.18 % and 15.17 % of the aggregate of the company’s fully paid-up equity capital and free reserves as per the latest standalone and consolidated audited financial statements respectively, for the year ended March 31, 2023.

The offer price of the buyback represents premium of 23.68 % and 23.32 % over the closing price of the equity shares on NSE and BSE, respectively, on October 19, 2023 being the day preceding the date when intimation for considering and approving the proposed Buyback offer at the Board Meeting was sent to the Stock Exchanges.

Somany Ceramics is a manufacturer and trader of a complete decor solutions and its extensive range of products include ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, sanitaryware, bath fittings and allied products.

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