Welspun India Buyback 2023

Welspun Group is one of India’s fastest-growing global conglomerates with businesses in Line Pipes, Home Textile Products, Infrastructure, Warehousing, Steel, Oil & Gas, Advanced textiles and Flooring solutions. With the immense global presence in over 50 countries and a strong team of over 26,000 home textile manufacturers in India spanning varied ethnicities, cultures, and geographies, company have acquired global leadership in home textile products and line pipe. In order to stay prominent across all the businesses, it constantly strive to provide our customers with a delightful experience through innovation and technology. Welspun has a wide variety of home textile brands in India and a product portfolio in three major categories ,i.e, Bed, Bath and Flooring. which makes them the preferred choice in homes across the world.

Competitive Strength:

(i) Offer innovative products, based on extensive consumer research.

(ii) Highest market share in the US, and we hold a dominant position in India and the UK.

(iii) Global distribution network with an omnichannel support system in over 50 countries.

(iv) Vertically integrated facilities with 360o capabilities from farm to shelf.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: May 10 2023
Buyback Opening Date: May 16 2023
Buyback Closing Date: May 22 2023
Buyback Offer Amount: ₹ 195 Cr
Date of Board Meeting approving the proposal: Apr 27 2023
Date of Public Announcement: Apr 29 2023
Buyback Offer Size: 1.64%
Buyback Number of Shares: 1,62,50,000
Price Type: Tender Offer
FV: 1
Buyback Price: ₹ 120 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 1,62,50,000((One Crore Sixty Two Lakhs Fifty Thousand) equity shares of the Company (representing 4.91% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 120 (Rupees  Four Hundred Forty-Five Only) per equity share payable in cash for an aggregate consideration not exceeding 195 Cr (Rupees One Hundred Ninety-Five Crores Only).

Salient financial parameters:

Particulars (In Cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales + 6,050 6,527 6,741 7,340 9,311
Expenses + 4,926 5,458 5,526 5,988 7,950
Operating Profit 1,124 1,068 1,215 1,352 1,362
OPM % 19% 16% 18% 18% 15%
Other Income + 81 -187 139 68 63
Interest 141 159 178 198 131
Depreciation 504 436 481 454 420
Profit before tax 560 287 694 769 873
Tax % 29% 21% 24% 28% 30%
Net Profit 398 226 524 551 607
EPS in Rs 3.83 2.09 5.05 5.37 5.98
Dividend Payout % 17% 14% 20% 3% 2%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  Welspun India in  Demat or physical form as on the record date [10.05.2023]
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [16.05.2023 to 22.05.2023] by selling your shares through your broker on NSE or BSE.
3. Then on [07.06.2023], 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 1,667 Shares at CMP of Rs. 88 (2,00,000/120)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested In Buyback 1,46,696 1,46,696 1,46,696 1,46,696
No. of Shares Buyback 550 834 1,250 1,667
Buyback Profit 17,600 26,688 40,000 53,344
Profit % 12% 18.19% 27.26% 36.36%


    I have only 100 shares. How much % will be accepted? Do I participate on First day or wait till last day?

      Acceptancy % will be known once process completed, based on the mail received ER its about 6%, AR will improve further but its a wait and watch. It doesn’t matter whether you participate on first day or last day, do it as you wish

    Retail Category – 5 Shares out of 81 – ER =6.17

    General Category – 1 out of 69 – ER = 1.44%

    Just got a mail, 128 for 2080, that’s just about 6% ER, what can we expect on AR?
    One good thing is, they are moving very fast, 10th May record date and buyback starting on 16th May and payment will be done before 29th May.

    Sivaramakrishna ji is right to a certain extent in general.But sometimes things don’t work that way. Look at the irrational price movement of Welspun. See how much has it gone up! At about ₹86/ I bought some and sold these after a few days fearing , as the experts suggested that it was very high. The price has crossed ₹100/ and I have no hope of getting it again even at 89/ around which I sold

      Gopi ji,
      Yes, sometimes things don’t work that way. I agree. Experts may also tend to go wrong sometimes. Really,i am sorry to know that you have sold the shares and could not purchase at your price. Please believe that many people could not purchase due to the fear of the then price. I am also one among such. Some times it happens. All the best.

        Thanks dear for sharing your thoughts.Let us look forward to the new buy back coming, Goldiam International, I mean.

        Got lukcy this time as I bought 1000 shares @ 87 and sold 700 @ 100. Sitting with 300 shares for the buyback. Will buy again if the share comes in the zone of 85-90.
        I bought shares following the previous year pattern. I bought 1000 only as I am planning to buy another 1000 if the price get dropped to 80 so I can make a good avergae.

    Buyback Tips:

    I humbly submit the following within my limitations with the thought that it may be helpful at least to some extent to the new entrant.
    1. During my experience I have learnt that one should not hastily purchase the shares without having the details like Mode of Buyback, Quantum of buyback, Price of the buyback etc.,
    2. It will be normally better to wait for a reasonable period (within a week) for settlement of the Market price to purchase the shares even on knowing the outcome of the board meeting instead of hurriedly purchasing on the day of the meeting as the Market price on the day and the subsequent one or two days will normally be a bit more due to heavy demand for purchasing.
    3. It will be normally better to wait for a reasonable period at least for a couple of days for settlement of the Market price to sell the unaccepted shares after the buyback due to heavy pressure of selling on the day one or two of the receipt back of the unaccepted shares in the d mat account.

    Thank you.

      Thanks for sharing. Such writeups helps others.Control of emotions plays major role in such situations. We must agree to disagree so experts can shares their views here.
      Be ready for goldiam international. It was 13/200 last time AR.

        13/200 AR is for non-reserved (other than the Retail) Category. Almost 50% for the Retail Category. On the Record Date, the price jumped high and closed at the rate above Rs.1000/-. Thus, the investors like me holding 200 shares have been categorised under non-reserved category and put to loss accordingly due to low AR. OK. Past is past. Let us look forward for the current one. Today, I have purchased 287 shares @ around Rs. 147.85 in the first phase. All the best to all of you.

          Sir, What do you expect the AR to be?
          ER will be less than 10% so AR around 25%?

    Welspun India is a textile company that operates in both domestic and international markets. Its share price reflects the demand and performance of the company in the stock market. As of October 2021, Welspun India’s share price is fluctuating around ₹173 per share. The company has shown resilience amid the pandemic, with net profit increasing by 78.2% in Q4 2021 compared to the previous year. The company has been making strategic investments in capacity expansion and R&D to strengthen its market position. Welspun India has also been focusing on sustainability, with a goal to be carbon-neutral by 2024. The company’s future outlook appears positive, with a growing demand for sustainable textiles and increased usage of e-commerce platforms. Investors who are keen on investing in the textile industry can consider keeping an eye on Welspun India’s performance and track its developments in R&D and sustainability practices, which could attract socially responsible investors.

      It would have been more helpful had you presented the latest update on the company’s performance n share price movement. Will you please through some light on them? Anyway, thank you very much for your kind presentation. I am in the early stage of learning and hence my appeal to you to enlighten me of the details.

    Thanks again Ankit ji for the details. Bought 790 after your update.

      Thanks dear for your prompt update. Open market or tender? What about dividend?.

        Buyback is Through Tender Route

        Buyback Price Rs. 120 per Share
        Buyback Size is 16,250,000 Share
        Dividend Rs. 0.10 per Share
        Record Date is 10 May 2023

      Based on last year’s shareholding pattern, ER comes around 6%. Not a lucrative deal

    Not succeed in the bid for purchase either yesterday or today. Not dare enough to purchase at the CMP. Let us wait for the opportunity to purchase @ around Rs. 75/- to 80/-. All the best to all of you. Thank you.

      I fully agree with you SRK ji, and have same feeling 80 is maximum rate for this before dividend and could be bought cheaper Ex-dividend,,, Not much profit in having dividend as it is 100% taxable and then the price would fall,,,
      I feel it is better to buy after ex-dividend…

        Sumit ji,
        I am also looking forward for a reasonable ex-dividend price. Thank you n all the best.

          Thanks for sharing your view. I have bought 150 shares today and will buy some more shares tomorrow morning before meeting outcome. Generally the dividend is less than Rs 0.50 in couple of previous years which hardly impact the market price. Last time after the annoucement of meeting the share shoot more than 10% although the quarterly result was not so much positive for the company. I assume the buyback wil.l be tender offer via Board and the buyback price is around 105-115

            Thanks Rohit ji for your information. This year is slightly different, as overall there is softness in the market. I would prefer to buy after having all details like ER % and Tender / market before buying,
            Else if it is available at 80 at any time.

    With a price appreciation of about 33 percent in a month already, it has become very difficult to decide whether to participate and when to buy. Any suggestions from Sumit ji?

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