Kajaria Ceramics Limited has officially announced a public announcement and shareholders’ resolution for the buyback of its equity shares. The company plans to repurchase up to 21,50,000 equity shares at a price of ₹1380 per share. This buyback aims to optimize returns to shareholders, enhance shareholder value, and manage the company’s surplus cash effectively. The tender offer route will be utilized for the buyback process, adhering to SEBI regulations.
Kajaria Ceramics Launches Equity Buyback Program
Kajaria Ceramics Limited has formally initiated a public announcement and secured a shareholders’ resolution for the buyback of its equity shares. This strategic move, announced on June 25, 2026, involves the repurchase of up to 21,50,000 fully paid-up equity shares, representing approximately 1.35% of the company’s total paid-up equity capital as of March 31, 2026.
Key Details of the Buyback
The buyback will be conducted through the tender offer route at a price of ₹1380 per equity share. The total consideration for the buyback is capped at approximately ₹296.70 crores, excluding transaction costs. This offer price represents a premium over the market prices of the company’s shares.
Objectives of the Buyback
The primary objectives behind this buyback initiative include:
- Optimizing returns for shareholders.
- Enhancing overall shareholder value.
- Returning surplus cash to shareholders in a tax-efficient manner.
- Improving key financial ratios such as earnings per equity share and return on equity.
The buyback is also intended to provide shareholders with an option to receive cash for their shares or to continue holding their stake and benefit from a reduced equity base, thereby potentially increasing their percentage shareholding post-buyback.
Regulatory Compliance and Process
The buyback is being executed in compliance with the Companies Act, 2013, and the SEBI (Buy-Back of Securities) Regulations, 2018. The company has published a public announcement in leading newspapers, including Financial Express and Jansatta, on June 24, 2026. Copies of the public announcement and the certified true copy of the shareholders’ special resolution are being submitted to the stock exchanges.
Financial Rationale
The total buyback amount of approximately ₹296.70 crores represents 10.27% (standalone) and 9.87% (consolidated) of the company’s paid-up capital and free reserves as of March 31, 2026. This amount is well within the statutory limit of 25% of the aggregate paid-up share capital and free reserves.
Promoter and Management Stance
The Promoter and members of the Promoter Group have expressed their intention not to participate in this buyback offer. The buyback is expected to be completed within one year from the date of passing the special resolution.
Auditor’s Report and Solvency Confirmation
An Independent Auditor’s Report has been obtained confirming the permissibility of the capital payment for the buyback. Furthermore, the Board of Directors has confirmed, based on a full inquiry into the company’s affairs and prospects, that Kajaria Ceramics Limited will be able to meet its liabilities and will not be rendered insolvent within a period of one year from the date of the Board meeting or the Postal Ballot Resolution.
Shareholder Participation
Participation in the buyback is voluntary for eligible shareholders. A portion of the buyback is reserved for small shareholders. Detailed instructions for participation will be provided in the Letter of Offer.
Source: BSE
