Shares of Tanla Platforms Ltd. surged nearly 8% after the company's board of directors approved the buyback of shares worth Rs 175 crore from the public.
Tanla Platforms plans to repurchase up to 20 lakh shares from the secondary market at a price of Rs 875 per share. The buyback offer is subject to shareholder approval through a special resolution via postal ballot and remote electronic voting, as well as other necessary statutory approvals.
The company also said that the 12 promoter entities, which collectively own 45.49% of the company as of March, will not participate in the buyback. Kotak Mahindra Capital Co. has been appointed as the manager for the buyback process.
The exact number of equity shares and the percentage of the existing paid-up capital to be bought back will be determined upon the completion of the buyback process.
Tanla Platforms Share Price Today
The scrip rose as much as 7.69% to Rs 707.70 apiece. It pared gains to trade 5.03% higher at Rs 690.20 apiece, as of 09:54 a.m. This compares to a 0.33% advance in the NSE Nifty 50.
It has fallen 27.8% in the last 12 months. Total traded volume so far in the day stood at 8.2 times its 30-day average. The relative strength index was at 73.
The two analysts tracking the firm maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 12.4%.
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