BSE board approves share buyback via tender route, price fixed at Rs 816 per share

BSE share buyback: The board of BSE Ltd, the leading stock exchange in India, approved the share buyback via a tender route on July 6. The company will buy back 45.9 lakh equity shares, representing 3.39 per cent of the total number of equity shares in the total paid-up equity capital of the company as of March 31, 2023. The stock exchange said it would spend Rs 374 crore on the buyback.

The buyback price has been fixed at Rs 816 apiece. The price represents a premium of 34.09 per cent over the closing price of the equity shares on the NSE on Friday, June 30, 2023, the day preceding the date when intimation for the Board Meeting was sent to the Stock Exchange.

On Thursday, the stock ended at Rs 705.50 on the NSE.

A share buyback is the repurchase of a certain amount of a company's outstanding shares, either through a tender offer or via an open market route. In such a situation, the price of the concerned shares is higher than the prevailing market price.

For the fourth quarter of the last fiscal (Q4FY23), BSE reported a 24 per cent jump in net profit to Rs 88.61 crore. The exchange had posted a net profit of Rs 71.52 crore in the same quarter of the preceding fiscal, the BSE said in a regulatory filing to the National Stock Exchange (NSE).

BSE’s revenue from operations grew 11 per cent to Rs 227.01 crore in the latest March quarter. The same was at Rs 204.59 crore in the year-ago period.

For 2022–23, the bourse’s net profit declined 16 per cent to Rs 205.65 crore from Rs 244.93 crore in the same period a year ago.

However, its revenue from operations rose 10 per cent to Rs 815.53 crore in FY23. In the year-ago period, the same stood at Rs 743.15 crore, according to a PTI report.