Shares of BSE Limited surged nearly 7 per cent on September 1 after the company announced an increased buyback offer price of Rs 1,080.
BSE Ltd. has revised its share buyback price higher to Rs 1,080 from the earlier Rs 816 announced earlier. This comes after the recent surge seen in the company’s stock price.
BSE board also fixed the record date for the proposed share buyback at September 14, 2023.
However, the stock made an intraday high of Rs 1,134.60, which is already higher than the revised buyback price.
The revised BSE share buyback price is 1.62 per cent higher than Thursday’s closing price of Rs 1,062.75 apiece. However, on Friday, BSE share price rose more than 4 per cent to hit a 52-week high of Rs 1,122.00 per share, which is above the buyback price.
“… the board approved… increase in the Buyback Offer Price from Rs 816 per Equity Share to Rs 1,080 per Equity Share, payable in cash, for an aggregate maximum amount not exceeding Rs 374 crore..” BSE said in a regulatory filing.
BSE had announced a buyback last month at Rs 816 per share, which was to be carried out through the tender offer route. The total consideration for the buyback will now be Rs 374 crore. Based on the revised offer, the company will be buying back 34.7 lakh equity shares.
Since announcing the buyback, shares of BSE have already risen 30 per cent. The stock is currently trading at a record high.
Earlier in 2018, BSE had completed a Rs 166-crore open market share buyback at Rs 822 apiece (unadjusted price). Later, in 2019, the stock exchange did a tender offer buyback worth Rs 460 crore, when it repurchased its shares at Rs 680 apiece.
Last year, BSE had also declared a 2:1 bonus issue, which meant that it issued two bonus shares for every one share held. The stock has been trading ex-bonus since March 2022. The stock exchange had also declared a dividend of Rs 13.5 per equity share for fiscal year 2023.
Shares of BSE are trading 5.38 per cent higher at Rs 1,119.80. The stock is up for the fifth day in a row. Shares are also up 23 per cent for the week so far, which is likely to be the best week since March 2022.
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