Shares of Welspun India Ltd. rallied over 12 percent in trade on Tuesday after the home textiles company announced a buyback offer along with its earnings for the March quarter.

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Over the weekend, Welspun India's board of directors approved a buyback proposal worth Rs 195 crore. Under the offer, the company would buyback up to 1.62 crore shares at a price of Rs 120 apiece, which translates into a premium of 36.7 percent on Friday’s closing price of Rs 87.75 per share.

The buyback will be carried out via the Tender Offer route and the record date for the same has been set as May 10 to ascertain the eligibility of shareholders for the buyback.

For the March quarter, Welspun India reported a revenue growth of 15 percent year-on-year to Rs 2,154 crore, while operating profit, or EBITDA grew by 44 percent from last year. EBITDA margin also expanded by 300 basis points to 13 percent from 10 percent.

Welspun India said this was the highest EBITDA margin for the company in the last six quarters.

The company has also declared a dividend of 10 paise per share, record date for which has been set as June 30, 2023.

At the end of financial year 2023, Welspun India had cash worth Rs 593 crore on is books and it aims to become net debt free by financial year 2025.

Shares of Welspun India are currently trading 12.7 percent higher at Rs 98.60. The stock hit a 52-week high of Rs 99.5 in early trading. This is the best single-day performance for the stock in nearly a year.

(Edited by : Rukmani Krishna)