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BSE tumbles after board approves buyback

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Capital Market
Last Updated : Jan 16 2018 | 12:05 PM IST

BSE fell 4.20% to Rs 939.95 at 11:54 IST on NSE after the company said its board approved a proposal for buyback of equity shares.

The announcement was made on NSE after market hours yesterday, 15 January 2018.

Meanwhile, the S&P BSE Sensex was up 53.96 points, or 0.15% to 34,897.47.

On the NSE, 8.54 lakh shares were traded in the counter so far, compared with average daily volumes of 1.80 lakh shares in the past quarter. The stock had hit a high of Rs 957.80 and a low of Rs 931 so far during the day. The stock hit a 52-week high of Rs 1,200 on 3 February 2017. The stock hit a 52-week low of Rs 886.05 on 18 December 2017.

BSE announced that its board approved the buyback proposal for purchase by the company of its fully paid-up equity shares of face value of Rs 2 each, from the shareholders at a price not exceeding Rs 1100 per equity share through stock exchange. The buyback shall not exceed Rs 166 crore, which represents 9.99% of the aggregate of the company's paid-up equity share capital and free reserves based on the standalone audited financial statements of the company as at 31 March 2017.

At the maximum buyback price and for maximum buyback size, the indicative maximum number of equity shares bought back would be 15.09 lakh equity shares, comprising around 2.80% of the existing paid up equity share capital. If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares bought back could exceed the indicative maximum buyback shares.

The public announcement setting out the process, timelines and other statutory details will be released in due course.

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On a consolidated basis, net profit of BSE declined 12.07% to Rs 66.83 crore on 9.56% rise in net sales to Rs 156.78 crore in Q2 September 2017 over Q2 September 2016.

BSE, formerly Bombay Stock Exchange, is Asia's first & now the world's fastest stock exchange with a speed of 6 microseconds. BSE is India's leading exchange group and has played a prominent role in developing the Indian capital market.

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First Published: Jan 16 2018 | 11:52 AM IST

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