BSE falls 5% as board approves share buyback via open market

The stock dipped 5% to Rs 931 on NSE after the company announced that its board approved the buyback of shares at a price not exceeding of Rs 1,100 from the open market

BSE dipped 5% to Rs 931 on the National Stock Exchange (NSE) after the company announced that its board approved the buyback of shares at a price not exceeding of Rs 1,100 from the open market through stock exchange mechanism.

“The buyback shall not exceed Rs 166 crore. The maximum buyback size represents 9.99% of the aggregate of the company’s paid up equity share capital and free reserves as at March 31, 2017, “ BSE said in a regulatory filing.

The intention behind the BSE’s buyback is to take cognizance of the views and requests from its international and domestic shareholders and to improve BSE’s valuation for long term shareholders.

In past six months, the shares of BSE have underperformed the market by falling 17% as compared to 9% rise in the Nifty50 index.

BSE’s shares had got a bumper opening in February last year after an overwhelming response. The shares of Asia’s oldest stock exchange’s owners opened at Rs 1,085 on February 3, 2017, at a stellar 34.6% premium to its offer price of Rs 806 per share. It touched a 52-week high of Rs 1,200 in intra-day deal on debut day.

At 11:49 AM; the stock was trading 4% lower at Rs 940 on NSE.  Around 873,707 shares changed hands on the counter, the exchange data shows.