Share Buyback

Welspun Living Announces ₹252 Crore Share Buyback at ₹175 Per Share via Tender Offer

NSE

WELSPUNLIV

BSE

514162

Welspun Living Limited has announced a buyback of up to 1.44 crore equity shares at ₹175 per share through the tender offer route. The total buyback size stands at ₹252 crore, representing 1.50% of the company’s paid-up equity share capital and up to 6.52% of standalone free reserves. The buyback opens on May 29, 2026 and closes on June 4, 2026.

PRICE-SENSITIVE TRIGGER

Event: Board-approved equity share buyback through tender offer route.

Type: Share Buyback

Impact: Positive

Immediate Effect: The buyback provides an exit opportunity to shareholders at a fixed premium price of ₹175 per share and reflects management confidence in the company’s balance sheet, liquidity position, and long-term business outlook.

Key Metrics:

Revenue from operations (FY26): ₹10,560 crore
Total income (FY26): ₹11,067 crore
Profit before tax (FY26): ₹3,388 crore
Profit after tax (FY26): ₹2,568 crore
EPS (FY26): ₹96.75
Buyback size: ₹252 crore
Buyback price: ₹175 per share
Shares proposed for buyback: 1.44 crore shares
Buyback as % of equity capital: 1.50%
Operating cash inflow (FY26): ₹2,738 crore
Cash & cash equivalents as of March 31, 2026: ₹128 crore
Total equity as of March 31, 2026: ₹16,761 crore
Total assets as of March 31, 2026: ₹20,033 crore

Highlight:

Buyback offer price fixed at ₹175 per share for an aggregate consideration of ₹252 crore.

What Happened ?

Welspun Living Limited approved a buyback of up to 1,44,00,000 fully paid-up equity shares through the tender offer route. The company will repurchase shares from eligible shareholders as on the record date of May 22, 2026. The buyback will be executed at ₹175 per equity share in cash, with the total payout capped at ₹252 crore excluding transaction costs.

The company stated that the buyback size represents 6.52% and 5.65% of standalone and consolidated paid-up equity capital plus free reserves respectively, remaining within the regulatory threshold under SEBI Buyback Regulations.

Key Details

Buyback Structure & Timeline:

Buyback approved by board on May 15, 2026.
Record date fixed as May 22, 2026.
Buyback opens on May 29, 2026 and closes on June 4, 2026.
Buyback to be executed through the tender offer mechanism on a proportionate basis.
Small shareholders reserved entitlement ratio: 43 shares for every 676 shares held.
General category entitlement ratio: 13 shares for every 979 shares held.
Promoters and promoter group are eligible to participate in the buyback.
Company confirmed that no borrowed funds will be used for the buyback.
Post-buyback public shareholding will remain above regulatory minimum thresholds.

Note:

The buyback is being funded through internal accruals, free reserves, securities premium account, and available cash resources, indicating a strong balance sheet and liquidity position.

Risk Analysis

Summary:

While the buyback improves shareholder return metrics and signals management confidence, investors should monitor post-buyback liquidity, capital allocation flexibility, and future cash deployment priorities.

Key Risks:

Reduction in cash reserves following ₹252 crore payout.
Potential decline in free float liquidity after extinguishment of shares.
Buyback execution remains subject to regulatory processes and settlement timelines.
Participation acceptance ratio may vary depending on shareholder response.
Capital deployment toward buyback could limit near-term expansion flexibility.

Worst Case Scenario:

Lower-than-expected operational cash generation combined with reduced cash balances after the buyback could impact future investment flexibility or working capital allocation.

Risk Level: Medium

Company Commentary

The board stated that adequate financial resources have been earmarked for the buyback.
Management confirmed the company remains solvent and capable of meeting liabilities post-buyback.
The company confirmed compliance with SEBI Buyback Regulations and Companies Act provisions.
Welspun Living stated that the buyback will not lead to delisting and public shareholding norms will continue to be maintained.
The company confirmed that funds borrowed from banks or financial institutions will not be utilized for the buyback.

Official Exchange Filing: Welspun Living Limited