Welspun Enterprises announces share buyback, to pay special dividend. Key details

“The Board of Directors of the Company at its meeting held today decided, subject to shareholders’ approval, to undertake buyback of 1,17,50,000 equity shares of ₹10/- each at the buyback price of ₹200/- per Equity Share (Buyback Price), for an aggregate amount of ₹235 crore (Buyback Size), representing 14.22% and 15.74% of the total paid-up equity share capital and free reserves based on standalone and consolidated audited financial statements of the company for the financial year ended on March 31, 2022 respectively through the tender offer route,” the company informed in an exchange filing.

The promoters and promoter group of the company have expressed their intention to tender up to a maximum of 53,50,000 Equity Shares out of the 8,06,25,603 Equity Shares held by them (amounting to 53.76% of the equity share capital of the Company). DAM Capital Advisors Limited, a SEBI Registered Merchant Banker, has been appointed as the Manager to the buyback.

Further, the company said that “the board of directors of the company at its meeting held today have approved to pay One Time Special Dividend of Rs. 7.50 per equity share of the face value of Rs.10/- each at the rate of 75% for the financial year 2022-23. The Dividend will be paid to the shareholders who are holding equity shares of the Company on the record date is given below. It will be paid on or after January 20, 2023.”

A share buyback, also known as share repurchase, is a corporate action to buy back its own outstanding shares from its existing shareholders usually at a premium to the prevailing market price. 

Welspun Enterprises Ltd. (WEL), part of the Welspun Group, is an infrastructure development company focusing on road, water and wastewater segments. The stock is up about 75% in 2022.