Tanla Platforms hits 5% upper circuit for 2nd day straight on buyback plan

Shares of Tanla Platforms were locked in upper circuit of 5 per cent at Rs 930.55 on the BSE in Tuesday's trade after the company announced its board will consider buyback of equity shares of the company in their forthcoming board meeting.

A meeting of the board of directors of the company will take place between July 21-July 22, 2021. In particular on July 22, the Board shall, inter-alia, discuss and consider the unaudited financial results of the company for the quarter ended June 30, 2021.

The board will also consider a proposal for buyback of the equity shares of the company including matters related/incidental thereto (“Buyback”) and any other matter as the board of directors of the company may decide during the course of the meeting, Tanla Platforms said in exchange filing on Monday, July 12.

The primary objective of the share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better price to earnings (P/E) multiple.

Despite past two days' gain, Tanla Platforms has underperformed the market in the last three months by falling 2.5 per cent, as compared to a 8.6 per cent rise in the S&P BSE Sensex. However, in the past one year, it has rallied 1,101 per cent, as against a 44 per cent rally in the benchmark index.

As on March 2021, the promoters held 41.22 per cent stake in Tanla Platforms, individual shareholders 39.25 per cent and institutional investors led by foreign portfolio investors (11.76 per cent) collectively held 15.09 per cent stake in the company, the shareholding pattern data shows.

As one of the world’s largest CPaaS players, Tanla processes more than 800 billion interactions annually and about 60 per cent of India’s A2P SMS traffic is processed through its distributed ledger platform-Trubloq, making it the world’s largest blockchain use case.