Tanla Platforms' to do Rs 170 crore share buyback

9 Sept 2022 , 03:13 PM

On September 8, Tanla Platforms announced that its board has authorized a plan to repurchase shares for Rs 170 crore through a tender offer at a price of Rs 1200 per share. The record date for eligibility, according to the corporation, will be disclosed later.

Tanla Platforms stock rose 5% to close at Rs836.35 per share on the BSE, sending shares of the company higher. Its stock, which has increased more than 15% during the previous five trading days thanks to the repurchase plan, is down 54% for the year.

The business stated in a regulatory filing that the repurchase offer price reflected a premium of 66.39 percent and 66.27 % over the closing prices on the BSE and NSE, respectively, on September 1, the day before the date when the notification was submitted to the Indian bourses.

According to Hyderabad-based Tanla Platforms, the number of equity shares to be purchased at the buyback offer price is 14,16,666 shares or 1.04 % of all equity shares in the company's current total paid-up equity share capital as well as the total paid-up equity share capital as of March 31, 2022.

A corporation buys back shares from shareholders during a share buyback, sometimes referred to as a share repurchase, typically at a premium to the current market price. Returning money to shareholders in this manner may be an alternative tax-efficient method. By reducing the number of shares in circulation, share buybacks can raise share prices and earnings per share (EPS).

Tanla Platforms offers added-value services in the field of cloud communications. The company recorded a 3.90 % decline in net profit for Q1FY23, coming in at Rs100.41 crore as opposed to Rs104.48 crore in the same quarter of the previous fiscal year. Nevertheless, revenues increased by 27.74 % to Rs800.14 crore in Q1 from Rs626.38 crore in the quarter ending in June 2021.

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