BSE Limited Buyback 2023

BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian Stock exchange which is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, it is the oldest stock exchange in Asia and also the tenth oldest in the world. The BSE is one of the World’s largest stock Exchanges by Market Capitalization. 

Today BSE provides an efficient and transparent market for trading in equity, currencies, debt instruments, derivatives, and mutual funds. BSE SME is India’s largest SME platform which has listed over 250 companies and continues to grow at a steady pace. BSE StAR MF is India’s largest online mutual fund platform which processes over 27 lakh transactions per month and adds almost 2 lakh new SIPs ever month. BSE Bond, the transparent and efficient electronic book mechanism process for private placement of debt securities, is the market leader with more than Rs 2.09 lakh crore of fund raising from 530 issuances.

Keeping in line with the vision of Shri Narendra Modi, Honorable Prime Minister of India, BSE has launched India INX, India’s 1st international exchange, located at GIFT CITY IFSC in Ahmedabad.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Sep 14 2023
Buyback Opening Date: Sep 21 2023
Buyback Closing Date: Sep 27 2023
Buyback Offer Amount: ₹ 374.80 Cr
Date of Board Meeting approving the proposal: Jul 06 2023
Date of Public Announcement: Jul 06 2023
Buyback Offer Size: 3.39%
Buyback Number of Shares: 45,93,137
Price Type: Tender Offer
FV: 2
Buyback Price: ₹ 1080 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 34,70,370 (Thirty-Four Lakh Seventy Thousand Three Hundred Seventy) equity shares of the Company (representing 2.56% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 1080/- (Rupees One Thousand Eighty Only) per equity share payable in cash for an aggregate consideration not exceeding ₹ 374, 80,00,000/- (Indian Rupees Three Hundred Seventy Four Crore and Eighty Lakhs only).

Salient financial parameters:

Particulars (in Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales 652 606 630 841 925
Expenses 434 478 429 495 618
Operating Profit 219 127 202 346 307
OPM % 34% 21% 32% 41% 33%
Other Income 56 62 19 52 78
Interest 1 2 10 22 27
Depreciation 51 51 58 48 60
Profit before tax 223 135 153 327 297
Tax % 10% 11% 7% 25% 31%
Net Profit 199 121 142 245 206
EPS in Rs 12.82 9.05 10.73 18.8 16.31
Dividend Payout % 78% 63% 65% 72% 74%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of BSE Limited in Demat or physical form as on the record date [14-09-2023]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [21-Sep-2023] by selling your shares through your broker on NSE or BSE. 3. Then on [27-Sep-2023], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

If the market price of BSE Limited falls below Rs. 1080 before the record date of September 14, 2023, it would be profitable to buy shares for the buyback. Conversely, if the market price remains above Rs. 1080, selling at the market price would be more advantageous.


    BSE Buyback Start Date – 21-Sep-23 End Date – 27-Sep-23
    ER – Reserved Category – 1:26
    General Category 2:83

    Best of luck

    The entry of BSE in the FnO segment is the reason of this surge in the price of BSE Stock.

    BSE Share price is above the buyback Price…..So, buyback purpose is over now….unless price falls drastically around Record date…

    It’s really awesome that a company (BSE) Announced buyback of it’s share at a rate of 816 and CMP very rapidly almost touched BB PRICE. Before the company completed the entire process of POSTAL BALLOT etc .
    What’s mean for buyback for any in this scenario.
    Veteran please give some deep thoughts

      My attempts to dispose off all my holdings @ Rs. 809/- have not been succeeded. As a result, a few shares were sold. Hopefully looking forward for Monday to dispose all the remaining shares at such a good price.

        Disposed all except the leftover 12 shares with a reasonably good profit.

      It was a badly beaten down sector during a year or so prior to the Sensex and Nifty touching record levels. The income of Stock Exchanges will rise during boom time and fall when the reverse happens. Volatility also makes retail investors to run away from the stock market. Some of my friends and family members had BSE shares bought @ 712/ after the bonus issue by BSE last year or so. They have recently sold and escaped from loss but disappointed not to have earned anything. Similar is the case with CDSL. They are still learning how to hold on to qualify stocks even when it gets beaten down.

        I also have sold all my holdings with a small benefit. Today the price is substantially increased. Who can predict the market accurately? Of course, these are all common and we have to continue with such………Hopefully looking forward for the future. Thank you n all the best to all of you.

    Can anyone please comment how BSE Ltd rose so much today. I have not seen this before in recent times.

      I am also wondering the same.
      Can see huge traded volume today.
      But sudden change is not understandable after 6 days of buyback annoucement.

    If Retail Holding above 15% on record date then
    Retail and general category Entitlement Ratio will be same.
    ER 3.39%

      As per ipo central portal EER is 21.35 % .
      Little bit confusion created.

      It says no of share holders on record date thn 21.35 %
      Still record date announcement one month to go.
      May be previous buyback data &
      If we calculate 21.35% ER retail means Retail shareholding only 2.38%.
      Currently trendlyne showing 44.88%.

    Sumit ji,
    I am eagerly waiting for your kind views on the Buyback of BSE Limited. Thank you very much once again for your kindness in sharing your valuable views on the Buybacks of each case. All the best.

    BSE Buyback
    Buy back shares – 45,93,137
    Retail 15% quota shares – 6,88,971
    No of share holders < 2 Lakh – 4,52,353 and no of shares held by them are 6, 07, 99, 312
    ER = 6,88,971/6,07,99,312 =1.33%
    Is it really beneficial buyback????

      SEBI (Buyback of
      Securities) Regulations, • As per Regulation 6 of the 2018, fifteen percent of the number of securities which the company proposes to buy back or number of securities entitled as per their shareholding, whichever is higher, shall be reserved for small share holders.
      Taken from M patel comment

    Buy back shares – 45,93,137
    Retail 15% quota shares – 6,88,971
    No of share holders < 2 Lakh – 4,52,353 and no of shares held by them are 6, 07, 99, 312
    ER = 6,88,971/6,07,99,312 =1.33%
    Is it really beneficial buyback????

    Buyback rate is Rs 816 and buyback is for Rs 3,74,80,00,000/

      Excellent market watch. Thank you dear Rohit ji. Bought 90n now @684/ Rest after knowing the percentage.

        As per my analysis, very small chances of gain at this price becase there is no promoters shareholding and AR will be somewhere around 20% or less (after reviewing last buyback). Also, it will be via shareholder approval so it will take around 2-3 months.

          Thank you dear Rohit ji yet again for your analysis and expert comment. Sold my holdings today @713.9 and booked the profit
          Will wait and buy later.

            Thanks, Gopi for your message. I share my view as per my level of knowledge. I am not an expert. My personal view is only based on capital protection and lower risk with a high return of chances. So, I suggest you to please do your own homework before taking any action on the advice of any person in the forum.
            Maybe you are thanking me today and after 2-3 months (once the buyback is completed) you want to abuse me for my view 🙂

              You are really doing excellent work. I will continue to approve and appreciate it impartially, fairly and as honestly as I can 👍

      Buy back shares – 45,93,137
      Retail 15% quota shares – 6,88,971
      No of share holders < 2 Lakh – 4,52,353 and no of shares held by them are 6, 07, 99, 312
      ER = 6,88,971/6,07,99,312 =1.33%
      Is it really beneficial buyback????

        There is a difference between small shareholders and Resident Individuals holding nominal share capital up to Rs. 2 lakhs.
        Small shareholders mean shareholders holding shares upto Rs 2 lakh according to the market price whereas
        Resident Individuals holding nominal share capital up to Rs. 2 lakhs is according to the face value of shares (i.e. Rs 2 in case of BSE)

          Not understood. I checked in NSE website. It seems 31 March data, indicates no of shareholders.

            The disclosure filed on the BSE/NSE shows the number of shareholders according to share capital, not the market value.

            So for example, if the face and paid-up value of the shares is Rs 10 then a shareholder holding up to 20,000 shares will be reported under Small shareholders and Resident Individuals holding nominal share capital up to Rs. 2 lakhs.

            Whereas if the market value of the share is Rs 100 then he will not be considered a small shareholder as the value of his holding is Rs 20 Lakh. Small shareholders for the purpose of buyback will be shareholders holding shares up to Rs 2 lakh as per the market value on the record date (not according to share face value).

            I hope it is clear now.

    I think Welspun one was the quickest to complete the full buyback process within a month or so. Not sure what is the difference with each buyback and why some of them takn such a long time like Wipro took 3 months or so

      If buyback size if more than 10% of of the total paid-up equity capital and free reserves of the company then approval from shareholder is required otherwise boards approval is sufficient.

      In case of Welspun it was below 10% of of the total paid-up equity capital and free reserves of the company so board approval is sufficient. and in Wipro it was more than 10% hence aprooval from shareholder was required and it taken 1 month period to obtain the same.

      Hope you understand the same.

    Done some basic research and I think it will going to be Tender Offer with the approval of the shareholders.

      Hi Rohit Ji, if shared holder approval is involved, its takes about 3 months for complete process?

        Yes, it takes around 2-3 months to complete the buyback in case of shareholder approvals.

          The sec 68(2)(b) of the Companies Act, 2013 is very specific that if the buy back is ten percent or less of the total Paid up Capital then resolution of Board is suffice.

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