Rs 420 crore share buybacks: Welspun Living, CMS Info Systems turn ex-record date today. Tracking any?

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. Only those shareholders who hold the shares of the companies in their demat accounts as on the record date will be eligible to tender shares in the offers.

Hence, if any investor is planning to take any fresh holding in the two companies today, the shares will be credited to her demat account on Monday as per SEBI’s T+1 settlement rule, making her ineligible to participate in the buybacks.

Welspun Living earlier this month announced a share buyback via the tender route at a price of Rs 175 per share, implying a premium of more than 20% over the stock’s previous closing price of Rs 145.50 apiece on NSE. The textiles company plans 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.

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Promoters and promoter group have expressed their intention to participate in the share buyback, the company said, adding that the rationale behind the offer was to return surplus cash to its shareholders, improve return on equity and more.

Market regulator SEBI has mandated that 15% of a buyback’s total offer size must be reserved for small shareholders. The company said that it will determine the entitlement ratio on the basis of the shareholding pattern on the record date.

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.

The shares of the company have gained more than 8% in one week and 10% in one month, but declined 3% in one year. In the longer term, the stock delivered 58% returns over three years and 48% returns over five years.

CMS Info Systems fixed May 22 (Friday) as the record date for its share buyback worth Rs 168 crore. The tech company aims to repurchase over 49 lakh shares, representing 3% of its total stake, at a buyback price of Rs 340 per share. This implies a premium of more than 11% from the stock’s previous closing price.

The shares of CMS Info Systems have declined around 3% in one month and 14% in 2026 so far. The stock has tumbled 36% in the past one year. The company has a market capitalisation of nearly Rs 5,005 crore.