Buyback alert! Welspun Living announces Rs 252-crore share buyback at 30% premium. Check details

Textiles major Welspun Living on Friday announced a share buyback worth Rs 252 crore through the tender route at a buyback price of Rs 175 per share, implying a premium of more than 30% over the previous closing price.

In an exchange filing, the company announced that its board of directors has approved the proposal to buy back 144 lakh fully paid-up shares of the company with a face value of Re 1 each for an aggregate amount not exceeding Rs 252 crore. This represents 6.52% of the company’s total paid-up equity share capital and 5.65% of the free reserves.

Record date for Welspun Living share buyback

The record date to determine the eligibility for shareholders who can tender shares in the buyback has been fixed on May 22.Welspun Living further said that the board has formed a buyback committee to oversee the corporate action. It has appointed DAM Capital Advisors as the manager of the buyback.

This comes after Welspun Living undertook a Rs 278 crore share buyback via the tender route back in August 2024. The buyback price for the offer was fixed at Rs 220 apiece. Share buyback refers to a corporate action where a company repurchases its own shares from existing shareholders, mostly at a premium to the market price.

Welspun Living Q4 Results

Along with the share buyback, Welspun Living on Friday announced its results for the January-March quarter of the financial year 2026. The company’s net profit declined more than 21% to Rs 104 crore in Q4 FY26, as against Rs 132 crore in the corresponding quarter of the previous financial year.The textile company’s revenue from operations, meanwhile, declined around 8% YoY to Rs 2,435 crore in Q4 FY26 from Rs 2,646 crore in the same quarter last year. EBITDA fell around 17% YoY to Rs 265 crore, while EBITDA margin contracted to 10.8% during the quarter under review.

Welspun Living share price

Despite the sharp decline in earnings, Welspun Living shares jumped 3% to trade at Rs 138 apiece on NSE after the buyback announcement, as seen at 2.20 pm. The shares of the company have gained over 4% in one week and 12% in one month. The stock is overall up 6% in 2026 so far.

In the longer term, the stock has jumped 50% in three years and 38% in five years. The company has a market capitalisation of Rs 13,200 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)