Tanla Platforms Buyback: Board Sets Price For Rs 175-Crore Offer

Tanla Platforms Ltd.'s board of directors approved on Monday the price for the buyback of shares worth Rs 175 crore from the public.

The company has offered to repurchase up to 20 lakh shares from the secondary market at Rs 875 apiece, according to a stock exchange filing.

The 12 promoter entities will not be participating in the proposed buyback. They collectively own 45.49% as of March. Kotak Mahindra Capital Co. is the manager of the buyback.

"The Buyback offer 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 in accordance with applicable law. The process, timelines and other requisite details concerning the postal ballot will be communicated shortly," the filing said.

The actual number of equity shares and percentage of existing paid-up capital bought back shall be ascertained following the completion of the buyback, the filing added.

Foreign investors, including non-resident Indians and FIIs, hold 9.63% equity in Tanla Platforms, domestic financial institutions like banks, NBFCs, mutual funds, insurance companies and AIFs own 0.96%, and retail investors with a nominal share capital of up to Rs 2 lakh have nearly 9%.

Shares of Tanla Platforms closed 1.4% lower at Rs 657.15 apiece on the NSE before the announcement, compared to a 0.15% rise in the benchmark Nifty. The stock has fallen 31% in the last 12 months and 2% on a year-to-date basis.

Two analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average 12-month analysts' price target implies a potential downside of 7.6%.