BSE Board to Consider Share Buyback on July 6, 2023

BSE Ltd, the renowned stock exchange formerly known as the Bombay Stock Exchange, has announced that its Board will meet on July 6 to discuss and approve a proposal for a share buyback. The record date for the buyback will be announced later by the exchange.

If the proposal is approved by the BSE's board, it will mark the third instance of a share repurchase by the country's sole listed equity bourse since its listing in January 2017. Previously, the BSE conducted an open market buyback in 2018, amounting to Rs 166 crore at Rs 822 per share (unadjusted price). In 2019, the stock exchange carried out a tender route buyback amounting to Rs 460 crore, wherein it repurchased its shares at a price of Rs 680 per share.

Share buybacks are a tax-efficient method for companies to repurchase their own shares from shareholders, providing them with cash returns. This action reduces the number of shares available in the market, potentially increasing the actual value of the stock. 

The news of the impending buyback proposal has already had a positive impact on the company's stock, Year-to-date, the stock has witnessed a cumulative increase of nearly 16%.

Known for its exceptional speed, BSE Ltd boasts the title of the world's fastest stock exchange, with a remarkable response time of only 6 microseconds. 

In the fiscal year 2022-23, BSE witnessed a 16% drop in net profit, reaching Rs 205.65 crore compared to Rs 244.93 crore in the previous year. However, the exchange saw a 10% rise in revenue from operations, totaling Rs 815.53 crore. As a result, BSE announced a final dividend of Rs 12 per equity share for the financial year.