Buzzing Stock: Tanla Platforms hits 5% upper circuit post-investment by Premji Invest

The investment arm of Azim Premji joins the list of marquee investors in the CPaaS provider.

Shares of India’s largest Communication-Platform-as-a-Service (CPaaS) company, Tanla Platforms Limited hit the upper circuit in the early trade session on Thursday after reports of funds associated with Premji Invest – the investment arm of Azim Premji's endowment and philanthropic initiatives, bought shares worth around Rs 250 crore of the company.

The two funds, namely, Pioneer Investment Fund and Prazim Trading Investment Company Private Ltd, bought 13.50 lakh shares and 6.52 lakh shares at a premium of Rs 1,200, aggregating about Rs 250 crores. These funds bought the shares sold by Banyan Investments Limited in the secondary market.

Premji Invest has been active in investing in the Indian markets for over ten years. The focus of the investments has been to grow medium-sized Indian companies into large companies that can compete globally. Investments of Premji Invest is across sectors like consumer, financials, technology, and manufacturing and includes brands like Fab India, Hygienic Research, ID foods, Lenskart, Policy Bazaar, Flipkart, Gold Plus Glass, and Shubham Housing.

Tanla’s Q2FY22 revenue and PAT saw YoY growth of 44% and 67% respectively, and FCF generation remained strong. The gross margin in the enterprise segment of the company expanded by 340 basis points amid rising competition. The management of the company has alluded to market share gains and sees a higher wallet share of existing customers and new customer acquisitions as growth drivers. The company has a strong funnel of orders from new-age companies and has been gaining market share. It expects to announce two large partnerships on the Wisely CPaaS platform during Q3 and targets the international launch of Wisely in Q4FY22.

Tanla Platforms processes more than 800 billion interactions annually and about 63% of India’s A2P SMS traffic is processed through Trubloq, making it one of the world’s largest Blockchain use cases.

At noon on Thursday, the stock of Tanla Platforms Limited was seen trading at Rs 1459.15, up by 4.73% or Rs 65.95 per share on BSE. The 52-week high of the scrip is recorded at Rs 1,462.85 and the 52-week low at Rs 425.30 on the BSE.