Shares of Tanla Platforms surged nearly 8% on June 17 after the company’s board approved a share buyback plan worth up to ₹175 crore. Under this move, the company intends to repurchase up to 20 lakh shares, amounting to roughly 1.5% of its total equity.
The buyback will be carried out via the tender offer route at a price of ₹875 per share.
Based on the company’s latest financials as of 31 March 2025, the buyback represents 24.81% of its standalone and 7.78% of its consolidated paid-up equity share capital and free reserves.
The buyback will be executed on a proportionate basis for all eligible shareholders and beneficial owners as of the record date, which is yet to be announced.
Investors had been anticipating the board’s approval. The stock had already rallied 13% on June 12, following the announcement that the board would meet on June 16 to consider a buyback proposal.
This marks Tanla’s third buyback in the last five years, following previous buybacks in 2020 and 2022. In 2020, the company repurchased shares worth ₹154 crore at ₹1,200 per share, and in 2022, it conducted another buyback valued at ₹170 crore, also at ₹1,200 apiece.
In general, a share buyback involves a company purchasing its own shares from the open market or directly from shareholders. Companies often use buybacks to deploy excess cash, boost earnings per share (EPS), and signal confidence in their future outlook. By reducing the number of outstanding shares, buybacks typically lead to an increase in EPS, thereby enhancing shareholder value.
The buyback comes after the company reported dull earnings for the March quarter. Its net profit fell 10% on year to ₹117.3 crore, down from ₹130.2 crore in the same period last year.
Revenue grew by a marginal 2% to ₹1,024.4 crore from ₹1,005.5 crore a year ago. Operational performance also remained stagnant as Ebitda margin came unchanged at 16%.
