BSE ups buyback offer price to ₹1,080 apiece; sets Sept 14 as record date

Leading exchange group BSE Ltd, in a board meeting held today, set September 14, 2023, as the record date for the proposed share buyback. The company has also increased the buyback offer price from ₹816 per equity share to ₹1,080 apiece for an aggregate maximum amount of ₹374.8 crore.

The total equity shares to be bought back as per the revised buyback are 34,70,370, representing 2.56% of the total number of equity shares in the total paid-up equity capital as of March 31, 2023.

In BSE’s 18th Annual General Meeting on August 31, three ordinary resolutions and a special resolution were set out in the notice convening AGM. These resolutions included adopting the audited financial statements for the financial year ended March 31, 2023; dividend approval of ₹12.00 per equity share for FY23; appointment of a director in place of TC Suseel Kumar, who retires by rotation at this AGM. The special business resolution included consideration and approval of the buyback of equity shares.

BSE, in its July-6 announcement, had said the buyback offer size represented 25% and 19.64% of the aggregate of the company’s paid-up equity capital and free reserves as per the audited financial statements of the company for the financial year ended March 31, 2023.

As per the latest data, public shareholders own 74.14% stake in BSE, while, 25.86% shares are owned by trading members and associates.

The BSE board has set up a ‘buyback committee’ committee and delegated it “powers to do such acts, deeds, matters, and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in relation to the proposed buyback”. Vishal Bhat, company secretary, has been appointed as the compliance officer for the buyback.

Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) has been appointed as the manager of the buyback.

The BSE stock is trading 4.91% up ₹1,114.90 today as compared to the previous close of ₹1,062.75 on the NSE. At the current share price, the market cap of the company stands at ₹15,102 crore. The stock has seen a 4.65% jump in the past week, while it has surged 32.07% in the last month. In the past six months and year-to-date period, the BSE stock has risen 150.22% and 99.96%, respectively.

BSE's popular equity index -- the S&P BSE SENSEX -- is India's most widely tracked stock market benchmark index. It is traded internationally on the EUREX as well as leading exchanges of the BRCS nations (Brazil, Russia, China, and South Africa).

Last month, BSE Sensex created new milestones after crossing the 65,500-mark for the first time, while the Nifty50 index logged a fresh all-time high. With this, the m-cap of BSE-listed firms also crossed the historic ₹300 lakh crore mark for the first time.