The shares of cloud communications provider Tanla Platforms zoomed 11.30% to reach an intraday high of ₹ 872.30. This happened after the company’s board of directors fixed the record date for a share buyback.
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Tanla Platforms Ltd (formerly Tanla Solutions Ltd) is a global A2P(application to person) messaging platform provider that enables businesses to communicate with their customers and intended recipients.
The company at its meeting held on September 8, 2022, had considered and approved the proposal for the buyback of fully paid-up equity shares of the company having a face value of ₹ 1 at a price of ₹ 1,200 per share. The shares were quoting at ₹ 845.65 apiece at 01:32 PM on Thursday. Therefore, the company is buying it at a premium of 41.90%.
The company in an exchange filing informed the bourses that its Buyback Committee has vide its resolution dated October 12, 2022, considered, fixed and approved Tuesday, October 25, 2022, as the Record Date for the buyback. Therefore, shareholders whose names appear in the register of members of the company on October 25, 2022, will be eligible to participate in the proposed Buyback.
The company’s market price crashed in July, this year after it reported a 3.90 per cent decline in its consolidated Q1 profit to ₹ 100.41 crores from ₹ 104.48 crores in the corresponding quarter last year. However, its sales rose 27.74 per cent to ₹ 800.14 crores in the June quarter this year, against ₹ 626.38 crores in the June 2021 quarter.
Tanla platforms is a mid-cap company with a market capitalization of 10,624 crores. It has an excellent return on equity of 48.00%. The company’s shares are trading at a price-to-equity (PE) ratio of 19.86 which is significantly lower than the industry PE of 62.43. Therefore, the stock seems to be undervalued and its price may increase in the future.
Written by Simran Bafna
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