BSE shares rise 4% as Goldman Sachs picks up stake; zoom 200% in 11 months

Shares of BSE Ltd, known as the Bombay Stock Exchange (BSE), surged nearly 4% on Thursday, extending gains for the second straight session. The BSE share price has risen nearly 13% in two day in an otherwise lackluster broader market.  

On Thursday, BSE shares surged as much as 3.8% to ₹5,850, after rallying 8.6% to ₹5,631 in the previous session. The market capitalisation of the leading stock exchange climbed to ₹78,325 crore. The stock gained momentum today after global investment firm Goldman Sachs picked up a stake in the company through an open market transaction.

At the current level, BSE share price is up over 200% from its 52-week low of ₹1,941.05 touched on March 19, 2024. The largecap stock touched its all-time high of ₹6,133.40 on January 20, 2025, and is currently down nearly 5% from its record high level.

Goldman Sachs buys 7.28 lakh shares in BSE

As per the bulk deal data available on the National Stock Exchange (NSE), Goldman Sachs (Singapore) Pte acquired 7.28 lakh shares of BSE Ltd through an open market transaction on Wednesday. The global investment firm purchased the shares at an average price of ₹5,504.42 per share, amounting to ₹401.19 crore.

Last month, foreign brokerage Jefferies upgraded its rating on the BSE to ‘hold’ from ‘underweight’, while raising the target price to ₹5,250 from ₹3,500 earlier. The brokerage house expressed optimism about potential earnings upgrades for BSE, despite the adverse impact of the Securities and Exchange Board of India (SEBI) new norms on the derivatives market. As per the capital market regulator’s new rule, the Extreme Loss Margin (ELM) margin for all index derivative contracts expiring on the same day has been raised by 2%, which could potentially put additional pressure on discount brokers.

BSE reported strong growth in profitability

The stock exchange and data platform delivered robust earnings in December quarter of FY25, amidst challenges on the business and regulatory front, by introducing new products and market enhancements. The consolidated net profit doubled to ₹220 crore for three months ended December 2024, compared with ₹108.2 crore in the same quarter preceding fiscal.

The exchange posted its highest-ever quarterly revenue of ₹835.4 crore in Q3 FY25, up 94% from ₹431.4 crore in the same period preceding fiscal. The operating EBITDA jumped 111% to ₹236.5 crore from ₹91.9 crore in previous year, with EBITDA margin expanding to 31% from 25% in Q3 FY24.

During the quarter under review, BSE witnessed an average daily turnover of ₹6,800 crore as compared to ₹6,643 crore in the same period last fiscal. The BSE Derivatives segment registered its highest ever average daily premium turnover of ₹8,758 crore for the quarter as compared to ₹2,550 crore in the same quarter last year. For Q3FY25, 793 crore contracts in equity derivatives segment were traded generating a total revenue of ₹353 crore.

“BSE platforms continue to remain the preferred choice by Indian companies to raise capital by enabling issuers to raise ₹20.9 lakh crores by means of equity, debt, bonds, commercial papers, mutual funds etc in the first nine months of FY25. In Q3 FY25, BSE welcomed 30 new listings, raising ₹95,512 crores, up 261% on a YoY basis. The IPO market continues to show signs of growth, and the IPO pipeline remained healthy,” the company said in its earnings report.

“Whilst the road ahead will not be without challenges, we are optimistic about 2025 and we look forward to executing on our vision to lead and shape the development of the India's capital markets, and be the preferred marketplace for the customers,” said Sundararaman Ramamurthy, MD and CEO, BSE.

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