BSE Ltd has informed the exchange about board meeting to be held on July 6 to consider buyback. Following the news, BSE shares rose over 6% on Monday’s trading session. BSE’s share price started out close to its intraday low at ₹611.80 apiece on NSE.
On Thursday, July 6, the company’s board of directors will discuss the proposal.
BSE had already announced a 2:1 bonus issue in 2022, which meant that it issued two bonus shares for each share held.
Companies can create more value for shareholders by repurchasing shares. A percentage of the company’s profit used for the buyback of equity shares has a favourable effect on its share price under normal market circumstances.
BSE’s net profit for the fiscal year 2023 decreased by 16% year over year to ₹205.65 crore from ₹244.93 crore in the fiscal year 2022. Additionally, it had previously declared a dividend of ₹13.5 for the fiscal year 2023.
On the technical front, the stock has gained nearly 60% so far in today’s session from its 52-week low of 406.2. As per trendlyne data, the stock price rose 8.3% and underperformed its sector by 29.5% in the past year.
“Stock is in an uptrend as we have seen good volumes on upmoves post recent corrective phase. In near term, stock can rally towards ₹700,” said Ruchit Jain, Lead Research Analyst at 5paisa.
