Buyback announced. Max possible they could have done under the regulations and commendable. Totally in line with point 6 above. Unfortunately, Tanla standalone balance sheet is rather small and hence, even 25% doesn’t amount to much. This much cash Tanla will possibly generate additionally by the time the offer is completed and money is paid out to shareholders. Following remains open:
-
What will be use of 900-1000 crore cash still in bank by end of Dec22 (after payment of interim dividend and buyback)? Best possible time to do acquisition and geographically spread risk from enterprise business perspective. Will management rethink?
-
Merge Karix with Tanla. This will bring heft to the Balance Sheet and next time buy back is to be considered (Dec’23), some serious money can be bought into play.
Good thing is this buyback will give stability to stock price in 900+ range over the next 2 months, till Q2 results are annouced. The future trajectory will be set from that. Till then holding tight will be easier for folks.
| Subscribe To Our Free Newsletter |
