Welspun Enterprises fixes record date for share buyback, premium is up 32.84%


With a market valuation of 2,258.74 Cr., Welspun Enterprises Limited is a small-cap company that engages in the industrial industry. The primary business of the firm is infrastructure, and within that industry, the company is managing PPP projects in a number of different areas, including highways, water, and urban infrastructure.

On December 30, 2022, the Board of Directors of Welspun Enterprises approved the buyback of equity shares of up to 1.17 crore shares at 200 per share through the tender offer route for an aggregate amount of 235 crore. For the purpose of the same, the company has announced the record date today.

The company informed today in a stock exchange filing that “the Board of Directors approved the proposal of the Company to Buy-back upto 1,17,50,000 (One Crore Seventeen Lakhs Fifty Thousand) fully paid-up equity shares of the Company of face value of Rs.10/- (Rupees Ten only) each at a price of Rs.200/- (Rupees Two Hundred only) per equity share (the “Buy-back”) subject to approval from members of the Company The members of the Company have approved the Buy-back by passing a special resolution through extra ordinary general meeting dated January 24, 2023. Pursuant to the Regulation 42(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and Regulation 9(i) of SEBI (Buy-back of Securities) Regulations, 2018, as amended it is hereby informed that the Company has fixed Monday, February 13, 2023 as the record date for the purpose of determining the entitlement and the names of equity shareholders who shall be eligible to participate in the Buy-back and the shareholders to whom the letter of offer and tender form shall be dispatched in relation to the Buy-back.”

In a corporate action like buy-back, a company buys back its shares from existing shareholders, typically at a price higher than the prevailing market price. In the case of Welspun Enterprises, the share buyback price has been fixed at 200 per share, which is significantly higher than the company’s current stock market price of 150.55, reflecting an upside premium of 32.84%.

The shares of Welspun Enterprises Limited closed today on the NSE at 150.55 apiece level, up by 0.57% from the previous close of 149.70. The stock recorded a total volume of 298,689 shares compared to the 20-Day average volume of 787,915 shares. In the last 1 year, the stock has gained 60.16% and on a YTD basis, the scrip has fallen 11.28% so far in 2023. The stock touched a 52-week-high of 174.80 on (03-Jan-2023) and a 52-week-low of 69.00 on (12-May-2022).

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