Welspun Living to buyback shares worth ₹278 Crore

24 Jul 2024 , 02:31 PM

On Wednesday, July 24, Welspun Living Ltd. approved the buyback of its equity shares along with its June quarterly results.

The business would buy back up to 1.26 Crore equity shares with a face value of ₹1 each. The buyback amount will be ₹278 Crore.

The buyback price is set at ₹220 per share, a 26% premium to the stock’s closing price on Tuesday.

Welspun Living plans to purchase back up to 7.87% of the company’s total paid-up equity share capital.

The record date for the company’s share buyback is August 5, 2024. The buyback will be carried out under the “tender offer” procedure, which means the share will be repurchased at a predetermined fixed price.

DAM Capital Advisors has been appointed to manage the share repurchase.

Welspun Living also announced its June quarter earnings alongside the repurchase announcement. Revenue for the quarter climbed by 16% from the previous year to ₹2,536.5 Crore. In the quarter, earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed by 10% to ₹342 Crore.

The EBITDA margin for the quarter fell by 70 basis points to 13.5% from 14.2% the previous year.

Despite the Red Sea challenges and varied global macroeconomic conditions, Welspun Living reported a 20% year-on-year increase in exports, according to Chairman BK Goenka.

At around 2.22 PM, Welspun Living was trading 4.56% higher at ₹181.55, against the previous close of ₹173.63 on NSE. The counter touched an intraday high and low of ₹181.70, and ₹173.24, respectively.

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