BSE ups share buyback price, fixes record date; stock soars 28% in 4 days

BSE announced increase in the buyback offer price from Rs 816 per equity share to Rs 1080 per share.

Shares of BSE Limited hit a record high of Rs 1,166.50, on rallying 5 per cent on the National Stock Exchange (NSE) in Monday’s intra-day trade in an otherwise range-bound market after the company announced increased the buyback offer price from Rs 816 per equity share to Rs 1,080 per share.

The company also fixed September 14, 2023 as the record date for the purpose of determining the entitlement and the names of the shareholders who shall be eligible to participate in the proposed buyback.

The resultant equity shares to be bought back at the revised buyback offer price are 3.47 million equity shares, representing 2.56 per cent of the total equity capital of the company as on March 31, 2023, BSE said in an exchange filing on Friday, September 1.

In past four trading days, the stock has zoomed 28 per cent. At 11:39 AM; BSE was quoting 4 per cent higher at Rs 1,172.45, as compared to 0.16 per cent rise in the Nifty 50.

Earlier, the board of directors of BSE at its meeting held on July 6, had approved the buyback of up to 4.59 million equity shares of face value of Rs 2 at a price of Rs 816 per equity share, for an aggregate maximum amount not exceeding Rs 374.80 crore via tender offer.

Since July 7, the stock price of BSE has zoomed 72 per cent. Meanwhile, in past six months, it has more-than-doubled or skyrocketed nearly 150 per cent, as compared to 10 per cent rise in the Nifty 50.

Analysts at HDFC Securities expects BSE derivative market share to reach ~10 per cent in Q4FY24E, driven by the on-boarding of large member brokers, the launch of new weekly index contracts, hedging activity and a continued increase in active traders.

The increase in derivatives volume will boost cash volumes. The steps taken by the new management are yielding results and will boost growth and margin. The brokerage firm expects a revenue/EPS CAGR of ~19/25 per cent over FY23-26E, led by a revival in transaction revenue.