Fair value of BSE shares up over 17% over last year

Shares now worth Rs 163.39, compared to Rs 139.06 in FY13

The fair value of the shares of Asia’s oldest stock exchange is up 17.49% over the last year, even as earnings rose on lower expenses.

It has risen from Rs 139.06 to Rs 163.39 per share, according to a notice on the BSE website. The fair value is disseminated by the exchange to help brokers holding the shares to calculate their networth.

“The Exchange in order to have uniformity with regard to value of shares of BSE Ltd. based on the formula mentioned in the abovementioned Notice dated December 1, 2008 has determined the ‘Fair Value’ of Shares of BSE Ltd., duly certified by the Auditor of the Exchange at Rs. 163.39 per share. This value can be taken into account by the trading members for the purpose of computation of their Networth as on March 31, 2014 and thereafter for the purpose of computation of Networth as on September 30 2014,” said the notice on the BSE website.

The fair value is arrived at on the basis of the bourse’s earnings and the sum of the values of its various businesses individually.

“It may be noted that the determination of the fair value is the average of Earnings Value of Rs 112 per share and Break up Value of Rs 214.77 per share as determined on the basis of the said notice,” added the notice.

The BSE’s profits rose to Rs 135.2 crores for the financial year ending in March 2014, up 24.51% from Rs 108.6 crores last year. Its expenses on incentives paid to traders was down from Rs 95.5 crores to Rs 61.3 crores in the same period.

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