Buyback Alert: Textile player announces third share repurchase plan in four years; Details here

Shares of Welspun Living Ltd. surged as much as 5.5 % on Friday, May 15, in response to its quarterly results, as well as the board approving a buyback of its equity shares.

Welspun Living's board has given its approval to repurchase 1.44 crore fully paid up equity shares of ₹1 each at ₹175 per equity share for up to ₹252 crore through the tender offer route.

Price of the buyback is at a premium of 30% in comparison to Thursday's closing price.

Welspun Living has fixed May 22 as the record date to determine the eligibility of shareholders for the buyback. DAM Capital Advisors Ltd. has been appointed as the manager to the buyback, the company said.

Buyback History

Prior to this, the company has conducted two buybacks, in August 2024 and May 2023.

Back in August 2024, Welspun Living repurchased 1.26 crore equity shares of the company at a price of ₹220 per share. The total buyback size was ₹278.4 crore.

In 2023, Welspun Living had brought back 1.62 crore equity shares through the tender offer route in a buyback that was worth ₹195 crore. Price of that buyback was ₹120 per share.

Welspun Living In Q4

The company reported a weak set of earnings for the fourth quarter across all parameters.

Its net profit declined 21.4% to ₹103.7 crore from ₹132 crore last year. Its revenue was down 8% to ₹2,435.4 crore from ₹2,646 crore in the fourth quarter last year.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) declined 21.2% to ₹249 crore from ₹316 crore last year. Its margins contracted to 10.2% from 12% in the year-ago period.

Shares of Welspun Living were trading 5.1% up at ₹141.1 apiece after the results and buyback announcement.

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