Tanla Platform Buyback 2022

Tanla Platforms Limited (formerly known as Tanla Solutions Limited) started Journey as the new millennium set in with a small group of mobile messaging experts, with a base in Hyderabad, India, to create a world-class messaging service.

From 2000 till now, They have come a long way. Today, They have achieved global leadership in Their domain as one of the largest Cloud Communication providers in the world.

Talna Platform are innovating the way world communicates, continuously raising the bar through enhanced speed, ease and simplicity of our Cloud solutions. Over the years, They have developed and delivered cutting-edge technology and products which meet the discerning needs of a diverse clientele, from enterprises to carriers across geographies.

The standards we have set are industry-defying, difficult to surpass even by us. But then, that’s what we do best, beating us at our own game.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Oct 25 2022
Buyback Opening Date: Dec 20 2022
Buyback Closing Date: Jan 02 2023
Buyback Offer Amount: ₹ 170 crore
Date of Board Meeting approving the proposal: Sep 08 2022
Date of Public Announcement: Sep 08 2022
Buyback Offer Size: 24.91%
Buyback Number of Shares: 14,16,666
Price Type: Tender Offer
FV: 1
Buyback Price: ₹ 1200 Per Equity Share

Details of Buyback:

The board of directors of Tanla Platforms Limited (the “Company”) at its meeting held today, i.e., September 8, 2022 has considered and approved the proposal for buyback of fully paid up equity shares of the Company having a face value of INR 1/- (Indian Rupee One Only) (“Equity Shares” and such buyback “Buyback”) 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,  at a price of INR 1,200/- for an aggregate amount not exceeding INR 170 Cr/. 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.

Salient financial parameters:

Particulars in Cr. Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sales 432 579 792 1,004 1,943 2,341 3,206
Expenses 362 523 726 907 1,758 1,907 2,504
Operating Profit 70 56 66 97 184 435 702
OPM % 16% 10% 8% 10% 9% 19% 22%
Other Income -2 2 5 11 -36 22 16
Interest 1 0 0 0 7 2 3
Depreciation 53 20 57 73 378 40 41
Profit before tax 14 39 13 33 -237 415 674
Tax % 47% -5% -51% 11% 11% 14% 20%
Net Profit 7 41 19 30 -211 356 539
EPS in Rs 0.71 3.81 1.7 2.58 -14.47 26.18 39.73
Dividend Payout % 28% 7% 18% 14% 0% 8% 5%
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How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Tanla Platform Buyback 2022 in demat or physical form as on the record date [25.10.2022]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from 20-Dec-2022 by selling your shares through your broker on NSE or BSE. 3. Then on 2-Jan-2023, the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 166 Shares at CMP of Rs.836[200000/1200=166]
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 138776 138776 138776 138776
No. of Shares buyback 54 83 124 166
BuyBack Profit 19656 30212 45136 60424
Profit 14% 21% 32% 43%

Recommendation:

Review and Recommendation of Tanla Solutions Buyback 2022 from our IZ team is: 3/10 The IPO size is small i.e. only 170 Crores. So, nothing to play in this expect the price arbitrage.

11 Comments

    AR is 15% only. Nowadays the Buybacks are not found attractive.

    Reply

    Buyback starts on December 20,2022 and closes on January 02,2023.

    Reply

    SP Apparels Ltd on Wednesday announced that its board has approved share buyback of 6 lakh shares at ₹585 apiece. The Buyback is proposed to be undertaken from the equity shareholders of the company as on the record date i.e. October 07, 2022 on a proportionate basis, through the Tender Offer route.

    Reply

    Sumit ji,

    I shall be grateful to you if you can share your valuable views on this buyback. Thank you in anticipation of your prompt n kind response.

    Reply

      SRK ji, Not much in this .. Too small.. Too risky… Risk of Capital depreciatio…
      . Secondary market is offering better returns

      Reply

        Sumit ji,
        Thank you very much for your kind consideration to help me with your valuable views and suggestions.

        Reply

    Buyback Size. 14,16,666 shares
    Mode. Tender Offer
    Buyback Price. Rs.1200/-
    Record Date. To be announced

    Reply

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