BSE board approves share buyback of Rs 1.66 bn within a year of listing

The share buyback announced by BSE represents 9.99% of the total paid-up equity capital of the company

Leading stock exchange BSE said its board has approved the plan to buyback shares worth Rs 1.66 billion within one year of its listing.

"The board of directors of the company at its meeting held January 15, 2018 has inter-alia approved the buyback proposal for purchase by the company of its fully paid-up equity shares of face value of Re 2 each from the shareholders or beneficial owners of the company," BSE said in a regulatory filing to the NSE.

The exchange will buyback around 15,09,090 shares at a price not exceeding Rs 1,100 per share, it added.

At a price of Rs 1,100, it will be at 17 per cent premium over today's closing price of Rs 939.35.

The share buyback announced by BSE represents 9.99 per cent of the total paid-up equity capital of the company as of March 31, 2017.

"The buyback plan demonstrates the board's confidence in our future, our commitment to delivering values to all of our stakeholders and strong balance sheets. The intention behind BSE's buyback is two-fold -- take cognisance of the views and requests from its international and domestic shareholders and improve BSE's valuation for long term shareholders," its Chairman S Ravi said.

Last year, BSE had raised Rs 12.43 billion by selling a total of 15.4 million shares through initial share-sale offer. Its IPO had received an overwhelming response with a subscription of more than 51 times of the issue size.