Kajaria Ceramics Launches Buyback Tender Offer of Up To 21.5 Lac Shares at Rs 1,380/-

Kajaria Ceramics Launches Buyback Tender Offer of Up To 21.5 Lac Shares at Rs 1,380/-​

Kajaria Ceramics Limited has initiated a tender offer for the buyback of equity shares, offering existing shareholders the opportunity to sell their holdings in exchange for cash. The company aims to optimize returns and enhance overall shareholder value through this initiative, which is set to conclude within two weeks.

The buyback targets up to 21,50,000 Equity Shares (Twenty One Lacs Fifty Thousand only) at a fixed offer price of Rs 1,380/- per equity share. The aggregate maximum consideration for the purchase does not exceed Rs 296.70 crores, excluding transaction costs.

The buyback was approved by the Board of Directors and subsequently received approval from Equity Shareholders through a special resolution passed via postal ballot.

Timeline of Buyback Activities​

A schedule detailing the key dates for the tender offer has been established:

Financial Rationale and Implications​

The company stated that the buyback is a strategic move to return surplus funds to its members efficiently. The offer size remains within statutory limits, representing 10.27% and 9.87% of the aggregate of paid-up capital and free reserves, as per audited standalone and consolidated financial statements for the year ended March 31, 2026.

The buyback is expected to improve the company's financial metrics:

• Standalone Analysis (FY ending March 31, 2026): Net worth was Rs 2,899.30 crores, with a return on net worth of 15.75%. Post-buyback calculations project an improvement in Return on Equity to 17.55%.
• Consolidated Analysis (FY ending March 31, 2026): Net worth stood at Rs 3,065.58 crores, and the return on net worth was recorded at 15.83%. Post-buyback projections show a projected increase in Return on Equity to 17.53%.

The purchase price of Rs 1,380/- per equity share reflects various factors, including trends in volume weighted average prices and closing prices across both the BSE and NSE.

Shareholding Structure and Entitlement​

The buyback mechanism is divided into two categories: a Reserved Category for Small Shareholders and the General Category for all other Eligible Shareholders.

The entitlement ratios have been set as follows:

• Reserved Category (Small Shareholders): 16 Equity Shares for every 127 Equity Shares held on the Record Date.
• General Category: 21 Equity Shares for every 928 Equity Shares held on the Record Date.

The buyback is structured to ensure that the promoter group, which holds an aggregate shareholding of 47.69% as on the date of the Public Announcement, will not benefit from the tender offer route.

Operational Details and Oversight​

The company has appointed specialized parties to manage the transaction:

• Manager to the Buyback: Nuvama Wealth Management Limited.
• Registrar to the Buyback: MUFG Intime India Private Limited (Formerly Link Intime India Private Limited).
• Compliance Officer: Vinit Kumar, General Counsel & Company Secretary.

The offer is designed as a proportionate purchase from all eligible shareholders on the Record Date. The transaction will be executed through the stock exchange mechanism, with BSE designated as the Acquisition Window for facilitating shareholder bids.

KAJARIACER Stock Price Movement​

Shares of Kajaria Ceramics Limited settled on a downturn today, shedding 0.78% in post-market trading to close at ₹1203.6. The stock saw substantial activity, with 225,298 shares traded as the equity finished near its daily low.