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    Tanla Platforms approves its third share buyback in three years

    Tanla Platforms approves its third share buyback in three years

    Tanla Platforms approves its third share buyback in three years
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    By CNBCTV18.com  IST (Updated)

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    Tanla said that it would buy the shares at a price of Rs 1,200 per equity share and spend Rs 170 crore on the buyback.

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    Tanla Platforms Ltd.'s board approved a share buyback on Thursday, its third in as many years.
    The company will buyback 14.16 lakh or 1.04 percent of the total equity shares at a price of Rs 1,200 apiece, which is a 50 percent premium to the stock's closing price on Wednesday.
    Tender offer route will be used to carry out the buyback process. The company will spend Rs 170 crore on the buyback. As of March 2022, Tanla's net cash flow stood at Rs 278 crore.
    Tanla's promoters and members of the promoter group will not be participating in the said buyback. The buyback is subject to approval from shareholders.
    Promoter shareholding post the share buyback, if there is full acceptance of the offer size, will increase to 44.2% from the current holding of 43.73%.
    Previously known as Tanla Solutions, Tanla Platform ranks among the largest cloud communication providers in the world. Companies like Reliance, Hexacom count as its clients.
    This isn't the first instance of the company rewarding shareholders through buybacks or dividends. It announced its first buyback in April 2020 at Rs 81 per share. The second announcement came in July 2021 at a price of Rs 1,260.
    Chairman & CEO Uday Dasari tweeted about Tanla considering a buyback last week, stating that this is their conviction to return cash to shareholders.
    Since the buyback announcement in 2020, Tanla's shares have had a volatile run, climbing to as high as Rs 2,000 earlier this year before witnessing an equally sharp correction. The stock is down nearly 60 percent from its peak.
    Shares of Tanla ended locked in a 5 percent upper circuit at Rs 836.60.
     
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