 "BSE shares soar 8%, hit record high on 4x jump in Q2 profit")
Shares of BSE Ltd zoomed 7.8 per cent to Rs 2,168.5 per share on the National Stock Exchange on Sunday, also its record high, after the exchange reported four-fold jump in net profit at Rs 118.4 crore for the quarter ended in September 2023.
At 6:35 PM, shares of the exchange were ruling 5.4 per cent higher at Rs 2,119.5 per share as against 0.56 per cent gain in the benchmark Nifty50 index.
The bourse's revenue rose 53 per cent to a record Rs 367 crore in Q2FY24 from Rs 240 crore in the year-ago period. Further, its average daily turnover in the equity segment increased to Rs 5,922 crore in the quarter under review, from Rs 4,740 crore in three months ended September 2022.
That apart, the board of directors of BSE in their meeting on Friday have approved the fund infusion of Rs 22.36 crores in India International Exchange (IFSC) Ltd (India INX) and Rs 33.88 crore in India International Exchange (IFSC) Ltd (India ICC) towards purchase of equity shares through subscription of rights issue.
Meanwhile, the exchange has revised its transaction charges for Sensex Options, effective from November 1.
After revision, transaction charges for Sensex Options will start from Rs 500 per crore for the slab of up to Rs 3 crore monthly turnover, the highest being Rs 3,750 per crore for the slab between Rs 3 crore and Rs 100 crore monthly turnover of the trading members.
"The BSE option pricing is currently one-seventh of the NSE, which is not sustainable. We expect the pricing reset to happen soon and have increased options pricing by about 3 times; still, it's at 57 per cent discount to the NSE. Assuming a premium market share of about 9 per cent in FY26 (estimated) and a pricing increase, derivatives will account for about 25 per cent of the BSE's total revenue, 35 per cent of earnings before interest, tax, depreciation, and amortisation (Ebitda) and 75 per cent of incremental growth. We expect revenue growth at a compound annual rate of about 26 per cent and earnings per share growth at 31 per cent over FY23-26 (estimated), led by a revival in transaction revenue," said the HDFC Securities note.