Welspun Ent announced a Rs 235 crore share repurchase at Rs 200 per share, as well as a special dividend of Rs 7.5 per share

Welspun Enterprises Ltd announced a Rs 235 crore share buyback plan on December 30 at a price of Rs 200 per equity share, as well as the payment of a special dividend of Rs 7.50 per equity share.

"The business would buy back 1,17,50,000 equity shares of Rs 10 each at a repurchase price of Rs 200 per equity share, for a total of Rs 235 crore," according to a regulatory filing.

According to the company, the magnitude of the buyback is 14.22 percent of total paid-up equity share capital and 15.74 percent of free reserves (including securities premium).

The board of directors of the firm has called an extraordinary general meeting (EOGM) on January 24 to acquire shareholder approval for the repurchase.

The company, which is a subsidiary of the Welspun Group, also announced the payment of a "one-time special dividend of Rs 7.50 per equity share" by its board of directors.

The dividend would be paid out at a rate of 75 percent on shares with a face value of Rs 10 each for the fiscal year 2022-23, according to the market filing.

The dividend will be paid to the shareholders who are holding equity shares of the firm on the record date, which was described as "January 11, 2023". It will be paid on or after January 20, 2023, according to Welspun.

Following the announcement, Welspun's stock recovered and peaked at roughly Rs 172 per share on the BSE, after dipping to Rs 164 during the early trading hours.

Welspun, in its regulatory filing, also noted that the promoters and promoter group of the business had "indicated their intention to offer up to a maximum of 53,50,000 equity shares out of the 8,06,25,603 equity shares held by them". This equates to 53.76 percent of the company's equity share capital.