Shares of Tanla Platforms soared as much as 13% to hit an intraday high of ₹701.65 on the National Stock Exchange after the company announced that its board of directors would meet on June 16 to consider a proposal for a buyback of equity shares. This will be the third instance of shares buyback by the company in the last five years, after two previous ones in 2020 and 2022.
In a share buyback, a company purchases its own shares from the open market or directly from shareholders. Buybacks are carried out for several reasons, including utilising excess cash, increasing earnings per share, and signalling confidence in the company's future. Buybacks reduce the number of outstanding shares and thus it increases EPS, boosting the value of the stock.
The company’s board had also declared a second interim dividend of ₹6 per share for FY25, with a record date pegged at April 30. For the March quarter, Tanla’s net profit fell 10% to ₹117.3 crore, from ₹130.2 crore in the year-ago quarter. However, its revenue rose 2% to ₹1,024.4 crore, and EBITDA also grew 2% to ₹163.4 crore. The EBITDA margin of the company remained flat during the March quarter.
In 2020, Tanla Platforms had carried out a share buyback worth ₹154 crore, repurchasing shares at ₹1,200 apiece. However in 2022, the company did a buyback of shares worth ₹170 crore, at a similar price of ₹1,200 apiece.
At its intraday high, the stock was over 71% above its 52-week low level and over 34% below its 52-week high level. Shares of the company have lost over 24% in the last one year, but have gained over 4% in 2025 so far. However, the stock has gained more than 49% in the last one month.
In accordance with the Securities and Exchange Board of India's (SEBI) regulations, the trading window for dealing in the firm's securities will remain closed for all insiders involved in the buyback till June 18, the company had said in an exchange filing.
