BSE approves buyback worth Rs 375 crore via tender route at Rs 816 apiece

The board of directors of BSE Ltd on Thursday approved a share buyback of up to Rs 375 crore via tender route. The buyback has been approved at Rs 816 per share which is at a premium of 19 per cent from today's price.

The shares of BSE were trading at Rs 693.5, nearly 2 per cent in the green as of 2:40 PM on NSE.

"The resultant equity shares to be bought back at the buyback offer price are 4,593,137 equity shares, representing 3.39 per cent of the total number of equity Shares in the total paid-up capital," BSE said.

Under a share buyback, the company buys back its own shares from shareholders. It is seen as a tax-efficient way to give cash back to investors. It reduces the number of shares available for trading in the market.

This will be the third share repurchase by BSE, which is India's only listed equity bourse, since its listing in January 2017.

Earlier, BSE had conducted a Rs 166 crore open market buyback in 2018 at Rs 822 per share. In 2019, the stock exchange did a tender route buyback worth Rs 460 crore, when it repurchased its shares at Rs 680 apiece.

Earlier, BSE had also announced a 2:1 bonus issue on its shares.

In the financial year 2022-23, the bourse declared a 16 per cent fall in its net profit to Rs 205.65 crore from Rs 244.93 crore in the previous year. However, its revenue from operations rose 10 per cent to Rs 815.53 crore.