Tips Industries gains on Rs 37.2-crore buyback offer at a 34% premium

So far this year, the stock of this music label company has surged 36 percent, outperforming benchmark Sensex that gained 3.8 percent

Shares of Tips Industries gained in the morning trade on April 12 after the music label announced a Rs 37.2- crore share buyback offer at Rs 625 apiece.

The buyback prices is a 34.4 percent premium to the last closing price on BSE.

The share repurchase will help unlock value and return surplus cash to its shareholders, the company said.

The stock has surged 36 percent this year, outperforming the benchmark Sensex that gained 3.8 percent during the period.

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Tips Industries proposes to buyback 5.95 lakh full paid-up equity shares having a face-value of Re 1 each, depending upon the final price determined by the board.

The company proposes the buyback to increase equity shareholders' value and improve return on equity through distribution of cash.

ALSO READ: Warner Music extends its partnership with Tips Industries for 4 more years

Tips Industries has fixed April 22 as the record date to determine the entitlement and names of shareholders eligible to participate in the buyback.

Eligible shareholders will receive a letter of offer along with tender or offer form indicating their entitlement.

Tips Industries recorded 72 percent year-on-year (YoY) increase in net profit at Rs 35 crore in the December quarter, while revenue grew 27 percent to Rs 65 crore.

The company earns 76 percent of its revenue through digital platforms and has multiple partnerships with Youtube, Apple, Spotify, JioSaavn, Sony Music Publishing, Warner Music Group, and Prime Music.

At 9.26 am, the stock was trading at Rs 471.70 on BSE, up 1.32 percent from the previous close.

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