Welspun Living to launch ₹278 crore share buyback on August 9, stock rises nearly 4%

In a filing to the stock exchanges, the company informed about the share buyback offer of up to 1.26 crore (1,26,55,970) equity shares. The share buyback will start on August 9 and end on August 16 (Friday).

The company has fixed the price for the buyback offer at ₹220 per share, which reflects a 22% premium to Tuesday’s closing price of ₹180.09. The issue price is also 13% higher than the 52-week of ₹193.7 hit on August 6, 2024.

The buyback represents 7.87% and 6.67% of the paid-up equity share capital and free reserves of the company. It fixed the record date for the buyback on August 5, 2024.

The company informed the bourses that its promoters will also participate in the buyback. Promoters and their group currently hold 70.50% of the company's equity stake.

According to the company, the buyback may help improve return on equity by reducing the equity base, thereby leading to a long-term increase in shareholders’ value.

The company's shares soared by nearly 4% to a high of ₹187.27 per share on the NSE. The stock closed 2.6% higher at ₹184.7 apiece on the NSE.

Welspun Living Ltd is a leading home textiles manufacturer. It is also involved in the line pipeline, infrastructure, warehousing, steel, oil and gas, advanced textiles, and flooring solutions businesses.

Welspun Living Ltd has reported a 16% year-on-year growth in revenues to ₹2,536 crore for the June quarter of FY25, driven by strong performance of its businesses in global markets as well as in India. Its net profit rose 14% YoY to ₹186 crore, while EBITDA rose by 15% year-on-year to ₹393 crore in the first quarter.