The board of BSE Ltd today approved a share buyback proposal worth up to Rs 374.80 crore. This repurchase will be done through the tender route.
Asia’s oldest bourse, which is listed on the NSE, said in a regulatory filing that the buyback had been fixed for Rs 816 per share. Its shares closed at Rs 705.40 following the announcement, a gain of 3.68 per cent over its last finish. The buyback price marks a premium of almost 16 per cent to Thursday’s closing price.
“The resultant equity shares to be bought back at the buyback offer price are 45,93,137 equity shares, representing 3.39 per cent of the total number of equity shares in the total paid-up equity capital of the company as on March 31,” BSE said.
Under a share buyback or repurchase, a firm buys back its shares from shareholders or the market, and these are extinguished later. They are seen as returning surplus cash to shareholders and supporting the share in poor market conditions.
The previous occasion BSE came out with a buyback was in 2019 to the tune of Rs 460 crore at Rs 680 per share.
Stocks touch new high
Equity benchmark indices scaled fresh all-time closing highs on Thursday, driven by unabated foreign fund inflows and buying in index major Reliance Industries.
Defying a weak trend in the global markets, the Sensex climbed 339.60 points or 0.52 per cent to settle at its new all-time closing high of 65785.64. During the day, the benchmark jumped 386.94 points or 0.59 per cent to hit its lifetime intra-day peak of 65832.98.
The NSE Nifty rallied 98.80 points or 0.51 per cent to end at a new record high of 19497.30. In intra-day, it advanced 113.7 points or 0.58 per cent to reach its all-time intra-day peak of 19512.20.
