Somany Ceramics Limited (BSE:531548) announces a share repurchase program. Under the program, the company will repurchase up to 1,470,588 shares, representing 3.46% of its issued share capital, for INR 1,250 million. The purpose of the offer is to return surplus funds to the shareholders thereby enhancing the overall return to the shareholders, to optimize capital structure, to improve financial ratios like return on equity, earnings per share and return on capital employed and to provide an option to the shareholders to either participate in the buyback and get cash in lieu of their shares or not participate in the buyback and enjoy an increase in their percentage shareholding post the buyback, without additional investment.

The shares repurchased will be funded from free reserves of the company and/or such other source as may be permitted by the Buyback Regulations or the Act. The buyback is subject to approval of shareholders by way of a special resolution through a postal ballot. The record date for the offer is December 15, 2023.

The plan will be valid till December 28, 2023. As of October 20, 2023, the company has 42,474,208 shares issued and outstanding.