Debt-free stock Tanla Platforms shares soar almost 13% as board to consider buyback proposal on June 16

Mint

2 days ago

Shares of debt-free stock Tanla Platforms surged over 11 percent in intra-day trade on Thursday, June 12, after the company informed the stock exchanges that its board of directors would meet on Monday, June 16, 2025, to consider a proposal for the buyback of equity shares. The announcement triggered a sharp rally in the stock, with investor sentiment turning positive amid expectations of shareholder-friendly corporate action.
In its regulatory filing, the company stated, 'Pursuant to Regulation 29(1)(b) of the SEBI LODR, this is to inform that a meeting of the board of directors of Tanla Platforms Limited ('Company') will be held on Monday, June 16, 2025, inter alia, to consider the proposal for buyback of equity shares of the Company and other matters necessary and incidental thereto, in accordance with the applicable provisions of the Companies Act, 2013 (including the rules and regulations framed thereunder), the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended, and other applicable laws.'
If approved, this will be the third instance of Tanla Platforms pursuing a share buyback in the last five years. The company had carried out a buyback in 2020 worth ₹ 154 crore at a price of ₹ 1,200 per share. Two years later in 2022, the buyback size increased to ₹ 170 crore, although the buyback price was retained at ₹ 1,200 per share.
A buyback, or repurchase, of shares is a method by which a company buys back its own outstanding shares from existing shareholders, usually at a price higher than the current market rate. This corporate action reduces the number of shares in circulation, often boosting key financial metrics such as earnings per share (EPS) and return on equity (RoE). It also reflects the company's confidence in its future earnings potential, while serving as a tax-efficient way to return surplus capital to shareholders. In addition, a buyback can improve shareholder value by increasing the ownership percentage of remaining investors and enhancing the demand-supply equation for the stock.
The buyback proposal comes close on the heels of the company's Q4 earnings report. For the March 2025 quarter, Tanla Platforms reported a 9.9 percent decline in its net profit to ₹ 117.3 crore, compared to ₹ 130.2 crore in the same quarter of the previous fiscal year. Revenue, however, rose modestly by 1.9 percent to ₹ 1,024.4 crore from ₹ 1,005.5 crore in the year-ago period. The company's EBITDA also rose 1.9 percent to ₹ 163.4 crore, while the EBITDA margin remained steady at 16 percent.
Tanla's board had also declared a second interim dividend of ₹ 6 per equity share for FY25, with the record date for the dividend set as April 30, 2025.
The stock saw a sharp jump on June 12, rising to an intra-day high of ₹ 702.05—marking a nearly 13 percent increase. However, the stock is still over 35 percent below its 52-week high of ₹ 1,086.05, which it had touched in July 2024. The 52-week low of ₹ 409.40 was recorded in March 2025.
Over the past year, Tanla Platforms' stock has declined over 32 percent. Nevertheless, the stock has seen a turnaround since March, gaining over 12 percent in June so far and marking the fourth straight month of gains. It rose 30.6 percent in May, 1.5 percent in April, and 7 percent in March. Prior to that, the stock had been in a downtrend for six consecutive months between August 2024 and February 2025.
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