Shares of Tips Industries Limited saw a 2% increase in their price when the music label company, announced a share buyback offer worth Rs 37.2 crore at Rs 625 a piece, as per the company’s regulatory filing on April 10.

The offer is for 5.95 lakh full paid-up equity shares, with a face value of Rs 1 each, depending on the final price determined by the board.

The buyback price is 34.4% higher than the last closing price on BSE. The company aims to increase equity shareholders’ value and improve return on equity through the distribution of cash.

Tips Industries had a remarkable year so far, with its stock surging 36%, outperforming the benchmark Sensex’s growth of 3.8% during the same period.

The company’s success is due to its multiple partnerships with major digital platforms such as YouTube, Apple, Spotify, JioSaavn, Sony Music Publishing, Warner Music Group, and Prime Music. It earns 76% of its revenue through these platforms.

The company has also been performing incredibly well financially. It recorded a 72% YoY increase in net profit at Rs 35 crore in the December quarter, while revenue grew 27% to Rs 65 crore. 

The company’s strong financial performance and the buyback offer will help unlock value and return surplus cash to its shareholders. 

The record date to determine the entitlement and names of shareholders eligible to participate in the buyback is April 22. Eligible shareholders will receive a letter of offer along with a tender or offer form indicating their entitlement.

The offer will help the company to improve its financial position and increase shareholder value.

At 12:57 pm, the shares of Tips Industries Ltd were trading 1.04% higher at Rs 469.95 on NSE.