Welspun Enterprises Approves Buyback, Special Dividend

Welspun Enterprises Ltd.'s board has approved share buyback worth Rs 235 crore and announced a special dividend of Rs 7.5 per share.

The company will repurchase 1,17,50,000 equity shares of Rs 10 each at Rs 200 per equity share. The buyback size represents 14.22% of the total paid-up equity share capital and 15.74% of free reserves.

Promoters and promoter group of the company have "expressed their intention to tender up to a maximum of 53,50,000 equity shares, out of the 8,06,25,603 equity shares held by them". This amounts to 53.76% of the equity share capital of the company.

The special dividend of Rs 7.5 per share will translate into a dividend yield of 4.4% at a current market price of Rs 170 per piece. The dividend will be rolled out on shares with a face value of Rs 10 each, at the rate of 75% for fiscal 2023.

The dividend will be paid to the shareholders who are holding equity shares of the company on the record date of Jan. 11, 2023, which means the stocks will turn ex-dividend on Jan. 10, 2023.

To take advantage of the dividend yield, shares need to be purchased before the cum-dividend date, which is a day prior to the ex-date and two days before the record date.

The dividend will be paid on or after Jan. 20, 2023.

Shares of Welspun Enterprises have surged 121% so far in FY23.