Tanla Platforms share buyback: Hyderabad-based cloud communications company, Tanla Platforms on Thursday received the board of directors’ approval for the buyback proposal aggregating to ₹170 crore. The equity shares offered under the buyback have a face value of Re 1 each. A floor price of ₹1,200 apiece has been set for the buyback. This led to massive buying sentiment in Tanla shares. On BSE, Tanla shares have hit a 5% upper circuit as investors give thumbs to the buyback proposal. On BSE, Tanla shares closed at the upper circuit of ₹836.35 apiece up by ₹39.80 or 5%. The company’s market cap is around ₹11,353.08 crore.
On the previous day, Tanla shares were at ₹796.55 apiece. Tanla Platforms share buybackIn its regulatory filing, Tanla said, “considered and approved the proposal for buyback of fully paid up equity shares of the Company having a face value of Re 1 from all shareholders/ beneficial owners of the Equity Shares of the Company, as on record date, which will be decided subsequently, on a proportionate basis, through the “tender offer” route, using mechanism for acquisition of shares through stock exchange.” Tanla will buyback 14,16,666 equity shares at an offer price of ₹1,200 per equity share. The offer will be around ₹170 crore. It added, “The resultant Equity Shares to be bought back at the Buyback Offer Price are 14,16,666 Equity Shares, representing 1.04%, of the total Equity Shares in the existing total paid-up equity share capital of the Company as well as total paid-up equity share capital of the Company as on March 31, 2022.” Notably, Tanla’s buyback offer size represents 24.91 % and 12.89 % 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 of the Company, respectively, for the financial year ended March 31, 2022, which does not
exceed 25% of the aggregate of the total paid-up capital and free reserves. Meanwhile, the buyback offer price of ₹1,200 apiece represents a premium of 66.39 % and 66.27 % over the closing price of the equity shares on NSE and BSE, respectively, on September 1, 2022. Compared to the current upper circuit price on Thursday, the buyback floor price is at a premium of 43.48% on BSE and 43.49% on NSE. The buyback is subject to the approval of the shareholders by way of a special resolution through postal ballot by remote electronic voting only and all other applicable statutory approvals. As of September 2, 2022, the promoter and promoter group holds 5,93,70,282 equity shares or a 43.73% stake in Tanla. Apart from the promoters, shareholders like foreign investors (including non-resident Indians FIIs and foreign mutual funds) hold 1,98,79,728 equity shares or 14.64%, while financial institutions/banks & mutual funds promoted by banks/institutions — hold 1,01,585 equity shares or 0.074% in Tanla. Other investors (public, public bodies corporate, etc.) hold 5,63,93,928 equity shares, or 41.54% of the company. Post-buyback, the promoter and promoter group’s percentage of the existing equity share capital will be at 44.20%. However, other shareholders like foreign investors, financial institutions, and other investors — the number of equity shares in the company will decline to 7,49,58,574 equity shares or 55.80% compared to the pre-buyback level of 7,63,75,241 equity shares or 56.25%.
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