Tanla Platform fixes record date for share buyback, stock rallies 11%

Shares of cloud communications company Tanla Platform rallied over 11% to Rs 871.70 in Thursday’s intra-day trade on the BSE after it fixed October 25 as the record date to determine the entitlement and names of shareholders eligible to participate in the proposed buyback.

The company has proposed a buyback of 14,16,666 fully paid-up equity shares of the face value of Rs 1 each at Rs 1,200 per share through the tender offer process, Tanla Platform said in a BSE filing.

At the given buyback price of Rs 1,200, the company offers a premium of 53% on the last day’s closing price of Rs. 784.10 apiece on the BSE.

At 11.15 am, the scrip was trading 7.15% higher at Rs 840.20 over its last day’s closing price of Rs 784.10 a piece. The stock generated a multi-bagger return to the tune of 1,269% over 3 years. However, it has fallen over 44% in the last six months while plunging nearly 55% year-to-date.

Share buyback or share repurchase is a corporate action in which a listed company buys its outstanding shares to reduce the number of units in the open market.

Hyderabad-based

is among the leading cloud communications providers globally.