SMALLCAP TECH COMPANY IN WHICH PROMOTERS ARE BUYING BACK SHARES

Even as the broader market remains volatile, and wherein we have seen record selling by promoters, there is one company in which promoters are buying back their shares from the open market. Buybacks are often a means of returning cash to shareholders and taking back the shares as promoters think their shares are undervalued. The company we are talking about here is

. So what has prompted them to buy back shares ? is a market leader in the communications platform-as-a-service (CPaaS) business with a 30% market share. It enables companies to communicate with their customers and intended recipients. It’s ubiquitously present across SMS, Voice, OTT (WhatsApp, Truecaller), Chatbot, etc. It has a 35% market share in data security, privacy, spam, and scam detection, and processes over 800 billion transactions annually, accounting for approximately 63% of India’s A2P SMS traffic. It serves BSNL, Vodafone Idea, and Airtel in India. In addition, it serves over 2,000 clients across various industries, and serves 8 of the top 10 brands in the banking, retail, e-commerce, and tourism sectors. It maintains high customer engagement, and its relationships with 50 of the top 100 accounts are more than 5 years old. The company's share price has declined 69% from its all-time high of Rs 2,061 in Jan22 to Rs 635 today. The promoters are now buying back 2 million equity shares (about 1.5% of total equity shares) at Rs 875. This buyback size is Rs 1.75 billion, and is priced about 36% higher than it's current level. The shares currently trade at a P/E multiple of 17x, well below its 10-year average of 25x. As a result, the management expects better performance in FY26. In view of the above buyback, the company seems to be a good investment opportunity for the long term.