Welspun Enterprises Limited Buyback (Welspun Enterprises Buyback) Detail

Last date to be eligible to participate in buyback is Feb 10, 2023.

The Welspun Enterprises Buyback is a Tender Offer.

The Welspun Enterprises Buyback is being offered at Rs ₹200 per share per equity share.

The record date for the Welspun Enterprises Buyback is Feb 13, 2023.

The issue size of Welspun Enterprises Buyback is of 11,750,000.00 equity shares at ₹200 per share aggregating upto ₹235.00 Crores.

The Buy-back is being undertaken for the following reasons:

1. The Buy-back will help the Company to return surplus cash to its members;
2. The Buy-back would involve the allocation of a higher number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "small shareholders";
3. The Buy-back may help in improving return on equity;
4. The Buy-back gives an option to the members holding equity shares of the Company, who can choose to participate and get cash in lieu of equity shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding;
5. Optimizes the capital structure and enhances investor confidence.

Letter of Offer

All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.

The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.

The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.

The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.

The Welspun Enterprises Buyback offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.