BSE, the country’s oldest stock exchange, plans to buyback equity shares worth ₹375 crore at a price of ₹816 a share.
Depending on the response, the exchange intends to buyback 45,93,137 equity shares, representing 3.39 per cent of the total paid-up equity capital as of March-end.
The buyback offer price represents a premium of 34.09 per cent over the closing price of the shares on NSE on June 30, the day preceding intimation of the board meeting for considering buyback, it said.
The buyback offer size represents 25 per cent of the paid-up equity capital and 19.64 per cent of free reserves as of March-end.
The Board of Directors of BSE met on Thursday and approved the proposal to buyback equity shares of the company with a face value of ₹2 from investors, said the exchange in the statement.
The record date for ascertaining the eligible investors will be decided by the Board and Buyback Committee separately, it added.
Tendering process
The buyback will be through the tendering process on a proportionate basis using the mechanism for acquisition of shares through stock exchange, it said.
The Board has appointed Vishal Bhat, Company Secretary as the Compliance Officer for the purposes of the proposed buyback.
It also appointed Nuvama Wealth Management (formerly Edelweiss Securities) as the manager of the buyback.
The offer is subject to the approval of the shareholders by way of a special resolution at the ensuing 18th annual general meeting and all other applicable statutory approvals, it said.
The previous buyback by the stock exchange was done in July, 2019 and it issued a bonus share in the ratio of 2:1 in March, 2023.
Reacting to the latest buyback offer announcement, shares of the company gained 4 per cent on Thursday to ₹705 a share and inched closer to the 52-week high of ₹713 registered in March, 2022.
The company shares have been languishing for a long and hit the 52-week low of ₹406 on March 28 this year due to its tepid financial performance.
In the year ended March, the exchange registered a 16 per cent fall in net profit at ₹206 crore against ₹245 crore, while the income increased 10 per cent to ₹954 crore (₹864 crore).