Tanla Platforms board approves Rs 170-crore share buyback; stock ends 5% higher

Tanla Platforms on Thursday approved Rs 170 crore-share buyback through the tender offer route. The buyback price for the offer has been decided at Rs 1,200 per share.

For the buyback, the company shall come up with the record date later.

The IT company, in the filing to the exchanges said, "The board of directors of Tanla Platforms at its meeting held today considered and approved the proposal for buyback of fully paid up equity shares of the Company having a face value of INR 1/-..., on a proportionate basis, through the “tender offer”.

The resultant equity shares to be bought back at the Buyback Offer Price are 14,16,666 Equity Shares, representing 1.04 per cent, of the total Equity shares in the existing total paid-up equity share capital of the Company as well as the total paid-up equity share capital of the Company as on March 31, 2022.

The buyback offer size represents 24.91 per cent and 12.89 per cent of the aggregate of the company’s fully paid-up equity capital and free reserves as per the latest standalone and consolidated audited financial statements, which do not exceed 25 per cent of the aggregate of the total paid-up capital and free reserves of the company.

At the given buyback price of Rs 1,200, the company offers a premium of 44 per cent over today’s close of Rs. 834.2 apiece on the NSE. In trade today, the scrip hit an upper circuit and closed at Rs 834.2 per share. Over 3 years, the stock generated a multibagger return to the tune of 1269 per cent, but on a YTD basis, the stock has corrected by over 55 per cent.

Share buyback or share repurchase is a corporate action in which a listed company buys its outstanding shares to reduce the number of shares in the open market.

Tanla Platforms, based out of Hyderabad, is among the leading cloud communication providers globally.