Tanla Platforms Share Price Soars as Board Clears Rs 175 Cr Buyback - What It Means for Investors

The shares of Tanla Platforms, which is India's largest CPaaS (Communications Platform as a Service) provider, surged 7.6% to Rs 707 per share during Tuesday's trade as the firm's board of directors approved buyback proposal worth up to Rs 175 crore.

Tanla Platforms Board Approves Buyback

The company informed its investors through an exchange filing on Monday that the board had approved he repurchase of up to 20 lakh fully paid-up equity shares, representing approximately 1.49% of its total equity capital, at Rs 875 per scrip. This price indicates a 33% premium over Monday's closing price of Rs 675.15 on the NSE.

Out of the aggregate paid-up capital and free reserves based on the firm's latest standalone and consolidated audited financial statements for the year ended March 31, 2025, the buyback represents 24.81% and 7.78%, respectively.

How Will The Buyback Be Conducted?

The buyback will be conducted on a proportionate basis among all eligible shareholders and beneficial owners as of the record date, which is yet to be announced. The firm will also seek shareholder approval for the buyback through remote e-voting as well as a postal ballot to pass a special resolution.

Previously, a similar buyback was initiated in 2020, returning Rs 154 crore to shareholders at Rs 1,200 per share. This was followed by a Rs 170 crore buyback in 2022, again at the same price of Rs 1,200 per share.

The current buyback represents about 2% of the company's total market capitalization of Rs 9,288.6 crore. The buyback will also be executed through the tender offer route.

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