The board of directors of Cera Sanitaryware Ltd. approved the proposal to buy back 1.08 lakh fully paid-up equity shares. The buyback of the equity shares, representing around 0.83% of the total equity, will be at Rs 12,000 per share for an aggregate of Rs 130 crore, according to an exchange filing on Monday.
The company has set Aug. 16 as the record date to determine the names of shareholders eligible for the buyback.
The letter of offer, including the timeline and process of the buyback, will be released in the forthcoming days in accordance with the buyback regulations, the filing said.
The board has also formed a sub-committee and delegated all the powers to them to carry out the required deeds in relation to the buyback.
Shares of Cera Sanitaryware are trading 3.42% higher at Rs 9,230.85 apiece as of 2:02 p.m., compared to a 2.50% fall in the benchmark BSE Sensex.
Out of 20 analysts tracking the company, 15 maintain a 'buy' recommendation and five suggest 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 10.1%.
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