BSE Limited Buyback Offer 2019
(i) BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
(ii) BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
(iii) Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jul 29 2019 |
| Buyback Opening Date: | Aug 30 2019 |
| Buyback Closing Date: | Sep 16 2019 |
| Buyback Offer Amount: | ₹ 460 Cr |
| Date of Board Meeting approving the proposal: | May 07 2019 |
| Date of Public Announcement: | May 07 2019 |
| Buyback Offer Size: | 13.61% |
| Buyback Number of Shares: | 67,64,705 |
| Price Type: | Tender Offer |
| FV: | 2 |
| Buyback Price: | ₹ 680 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars(Cr) | Q4 FY19 | Q3 FY19 | QoQ Growth |
| Revenue from Operations | 115.69 | 104.68 | ↑11% |
| Less : Operating Expenses | 113.31 | 109.23 | ↑4% |
| Operating EBIDTA | 2.38 | (-)4.55 | |
| Add : Non-operational Revenue | 66.39 | 72.43 | ↓8% |
| Less : Non-operating expenses | 17.35 | 19.77 | ↓12% |
| Profit before exceptional items | 51.42 | 48.11 | ↑7% |
| Less : Exceptional Costs | 3.88 | 3.17 | ↑22% |
| Add : Share of Profit of Associates | 8.74 | 6.98 | ↑25% |
| Less : Taxes | 4.42 | 1.85 | ↑139% |
| Net Profit | 51.86 | 50.07 | ↑4% |
| Net Profit Margin | 28% | 28% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,86,984 | 1,86,984 | 1,86,984 | 1,86,984 |
| No. of Shares buyback | 97 | 147 | 220 | 294 |
| BuyBack Profit | 4268 | 6468 | 9680 | 12936 |
| Profit | 2.22% | 3.44% | 5.1% | 7% |
Recommendation:
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https://www.sebi.gov.in/filings/buybacks/sep-2019/bse-limited-post-buyback-pubilc-advertisement_44514.html
I had submitted 280 shares for buyback. No communication has been received till now. Submitted via ICICI Direct.
Received mail from karvy stating 29 accepted out of 100
AR – 32/110 – 29% appx, Confirmed.
Ur Broker ?
actual AR:- 16-17% .Please confirm…. 26/156 accepted.
Anyone who hasnt received any communication from BSE regarding buyback?
just received communication
Message received. Accepted 14 shares out of 50.
No message received for me
hi all, havent got any message from bse regarding acceptance of shares or money. Has anyone received this, if yes when?
BSE LTD BUYBACK 30% ACCEPTED
My acceptance was 55/344
In view of the recent changes in the tax for buybacks, please let me know the taxability for us individuals. Do we still need to pay short term/long term capital gains?
There is no change of taxes on short term capital gains. Long term capital gains are not taxable upto a sum of Rs 1 lac
Overall subscription is 3.57 times so acceptance SHOULDER be 30-35 percentage
Congratulations! Despite entitlement of only 13%, the acceptance will be close to 30%.
who told you that acceptance will be 30%?? that’s your prediction or is there any fact??
when will we come to know how many shares have been accepted by the Company?
In a week’s time.
Is there anyone who has not got the offer letter yet?
Retail and non retail subscription details
Hi all, has anyone received the buyback letter in email from Registrar, I see on my Zerodha Account that the offer is already open, however I dont see any buyback letter from the Registrar? Has anyone received buyback letter
Yes letter received
Hi Rohit, thanks for your reply. can you please let me know when did you receive the letter? What was the record date for this buyback? Is there any kind of lag sending in offer letters usually?
From the information above, it seems that record date was 29th July 2019, thus if I had BSE shares on that date in my demat account, I should receive an offer for buyback correct? Who is the Registrar for this buyback?
I had received on 20th August, the record date was 29th July, offer started on 30th August, ends on 16th September, registrar karvy fintech, settlement on 25th September
thanks again Rohit, just surprised why I havent got the letter yet, even though I had shares of BSE on the record date i.e. 29th July 2019
Would you know any possible reason of me not receiving the buyback offer letter? Is it necessary to hold the shares after the record date of buyback?
No it is not necessary to share after record date. I think you should contact the registrar for the reason for non receipt of offer letter
Hope you have been able to apply
I have two more IcicidirectDmat Accts IN303028-55423766-8502505650 and IN303028-50805787- 8500801434, against which we have 60 and 55 nos. BSE shares respectively as on 29/07/2019. In your buy back offer through the above said icicidirect D’mat accts, no qty is offered from your end. So can I offer the total quantity of 60 and 55 BSE shares as were available on the cut off date of 29.07.2019?. If not, how much can we Offer max? I shall await your quick response through my yahoo mail acct and also through SMS. to My mob.No. 9831000383. request a prompt response pl.
I have two more Dmat accts with my family members viz. IN303028-55423766-8502505650 and IN 303028-50805787-8500801434 against which we have as on 29/07/2019 60
I have presently 80 shares of BSE in my Dmat Acct,out of which 75 shares were available as on 29.0 I.2019.. In your buy back offer through my icici D’mat acct IN300183-13261648-8500123906, no qty is offered from your end. So can I offer the total quantity of 75 BSE shares as were available on the cut off date of 29.07.2019?. If not, how much can I Offer max? I shall await your quick response through my gmail acct and also through SMS. My mob.No. 9831000383
I have presently 80 shares of BSE in my Dmat Acct,out of which 75 shares were available as on 29.07.2019.. In your buy back offer through my icici D’mat acct IN300183-13261648-8500123906, no qty is offered from your end. So can I offer the total quantity of 75 BSE shares as were available on the cut off date of 29.07.2019?. If not, how much can I Offer max? I shall await your quick response through my gmail acct and also through SMS. My mob.No. 9831000383
14/110 Entitlement ratio = 13% appx, what are the estimation as tender date is near?
Hi all, if I only tender shares to the extent of my entitlement ratio. Will all the shares be accepted by the company ‘or’ the acceptance ratio will be applied to the shares tendered. i.e. If I held 250 shares on record date and my entitlement is 25, if I tendor 25 shares, will all the shares accepted by the company or only part? Request your help on this
Yes, all 25 will be taken up by the company.
thanks very much for the quick reply
What can be the estimated AR as per current situation.
letter of offer
https://d2un9pqbzgw43g.cloudfront.net/main/16696881.pdf
Opening from 30.08.2019 to 16.09.2019
Entitlement:
Retail= 7 out of 52 i.e. 13.4%
General Category= 23 out of 177 i.e. 12.9%
Tendering date for bse buy back came???
30th august.
13% allotment Ratio
Will buyback happen or will be cancelled as BSE has given only Record Date ?
let us wait for clarification from the management.
Buyback honewala he?? Kab mere pas 200 shares he
Don’t jump in bse.
1-1 share wali startegy pe Chalo.
Market condition is very poor.
can you please elaborate about what you meant by “1-1 share wali startegy” .Please do so urgently.
Buy 1 share from each account if you have multiple accounts.
FOR 120Rs?
Yes.27.5 % returns
Zerodha will deduct Rs 23.60 whether share is accepted or not. Kotak will debit Rs 37.17 as DP charge.
Risk Taken==Reward Earned/Lost !
Any views @Mw?
what will be expected acceptance ratio in bse buy back, please share. At current price can we buy bse shares?
Expert please advise to buy for buyback or not?
what is the record date of buyback?
please share some news market wizard sir.
everything is there on the page.
i am new for buyback.
kindly want expert advice.
if i purchase 1 share of any company before record date so i am eligible for buyback
now i gave that 1 share in tender offer in buyback and suppose AR is 20% only.
so company will accept my that 1 share? or they will reject it.
if Acceptance ratio is so less so in that case company have to accept 1 share from all eligible accounts or not?
Even if only 1 share it may get accepted.
But no guarantee.
It is informed that 29.07.2019 is record date for eligibility of buyback of BSE shares but doesn’t find such news in media, please confirm.
https://nseindia.com/corporates/corpInfo/equities/AnnouncementDetail.jsp?symbol=BSE&desc=Record%20Date&tstamp=160720191807&seqId=103658636
Direct from the Website of NSE !
I received email from my demat account provider stating July 29 is record date for buyback.
The demat account provider is recommending to buy at CMP. Is it worth still to enter now to leverage buyback?
Will this buyback be affected by the new tax introduced on buybacks in the budget? IS there a chance that the board will cancel buyback and instead opt for dividend to avoid high tax outgo?
We just need to wait for management decision.
The buyback price is lower than the IPO price. Why should it pay buyback tax?
As record date is not announced, 100% possibility of BSE cancelling the buyback. Wait for good dividend announcement in the next board meet.
I was lucky to sell 200 shares at 615 few days back and not waiting for buyback record date.
Any updates on BSE buyback?
Experts any advise on BSE ? 13.61% size is a big number. Also they have announced a dividend of 30/- per share.
Do you think below 600 is a good price to enter in this script ?
Date
bseby back declare ketla percantage ane expectation ketlu lage che pls
How many shares in retail quata under Rs.200000 as per Last share holding data?
Is it good idea to buy at current rate of 596 to participate in the buy back – pls advise
buy half…rest around 580
Thank you Viru Ji
Can we now buy BSE or wait for further fall due to fall in broader markets? I want to buy and participate in Buyback and Dividend so that any further fall in price after buyback can be cushioned a bit.
There is no hurry dividend ex date is 28 June and buyback would be considered in AGM on 15 July 2019. The record date would be then in last week of July. If panic sets in on results day or post results we can have better prices much lower than 600.
Thank you Gaurav.
Please comment what I understand is correct or not
Because 15% is reserved for retail. It is not maximum limit
It is maximum limit
I think entitlement ln retail is always equal or more than general. It is never less than general.
In rare case it can be
Kindly advise if in buyback participating in Retail category or Genery category will be beneficial..
Retail no doubt in that
See the case of Balrampur Chini, the buyback size was 3.69%
Entitlement based on Record date
Reserved Category for Small Shareholders = 5 Equity Shares out of every 62 Equity Shares
(8.0%)
General Category for all other Eligible Shareholders = 3 Equity Shares out of every 89 Equity Shares
(3.37%)
There is an upside of 7.86% from Current Market Price. If we add the dividend of Rs. 25, then it becomes 11.7% .
Total Shares reserved for Retail Shareholders are ~10 Lakh.
As per Annual Report of 2017-18 no. of Individuals holding nominal share capital up to 1 Lakh are ~1.27 Cr.
So Entitlement based on that would be 8%.
How can entitlement be ever less than 13.61%. Can you enlighten us?
13.61% is the total entitlement. Out of this 15% is reserved for retail.
Case 1:
Let us suppose 100 Cr shares are outstanding as on 31.03.2019 in the company.
(i) Promoters & Others = 90 Cr Shares
(ii) Individuals( Retail and HNIs) holding nominal share capital up to 1 Lakh is = 10 Cr Shares
Company is doing a buyback of 15% i.e 15 Cr Shares. Out of this 15 Cr, only 2.25 Cr are reserved for Retail.
Entitlement for Retail would be = 2.25/10= 22.5%. However, as 10 Cr shares held up with both Retail and HNIs so the final figure would be more than 22.5% for sure.
Entitlement for General Category would be = 12.75/90= 14.1%.
Case 2:
Let us suppose 100 Cr shares are outstanding as on 31.03.2019 in the company.
(i) Promoters & Others = 40 Cr Shares
(ii) Individuals( Retail and HNIs) holding nominal share capital up to 1 Lakh is = 60 Cr Shares
Company is doing a buyback of 15%(Buyback Size) i.e 15 Cr Shares. Out of this 15 Cr, only 2.25 Cr are reserved for Retail.
Entitlement for Retail would be = 2.25/60= 3.75%. However, as 60 Cr shares held up with both Retail and HNIs so the final figure would be more than 3.75% for sure.
Entitlement for General Category would be = 12.75/40= 31.875%
So you can see how entitlement may be higher and lower in Retail and General Category depending upon the difference in percentage between the two.
I do calculation only for retail. Please see if my calculation is correct.
What if promoter will not take part? I think in this they willnot take part for only such minor return
Mark my words ar will definitely more than 50 pc because of this dividend gem.
There is no Promoter of BSE. Promoter holding in BSE is a big zero 0.
Obviously promoter cannot take part in this buyback. BSE is a professionally run company.
entitlement can’t be lower than 13.61% for retail in any circumstances.
Will check my facts Pankaj Jii and revert. Thanks for pointing out the error.
Min. 15% of buyback size is reserved for retail. Retail Quota is determined on a two part criteria. Retail quota can be higher than 15% but for that to happen their holding on record date should be greater than 15%.
Which implies Retail Entitlement cannot be less than buyback size in any scenario which is 13.6%.
See the extract from Today’s Balrampur Chini Page 35. There are two Criteria involved:
In furtherance to Regulation 6 of the SEBI Buyback Regulations, the reservation for the Small Shareholders (Reserved Category), will be higher of:
(i) 15% of the number of Equity Shares which the Company proposes to Buyback, which works out to 12,65,749 (Twelve Lakhs Sixty Five Thousand Seven Hundred Forty Nine Only) Equity Shares; or
(ii) number of Equity Shares as per their entitlement as on the Record Date (i.e., 1,56,87,777 / 22,84,38,327 × 84,38,327), which works out to 5,79,494 Equity Shares. All the outstanding Equity Shares have been used for computing the Buyback Entitlement of Small Shareholders since the promoters and members of the promoter group also intend to participate in the Buyback.
Will check my facts Gaurav Jii and revert. Thanks for pointing out the error.
In heg
It was 10%
BB price is only 7%up, results is bad, dividend 30rs. Stock price should be goes low in short term..
Yes, results are not as per expectation. Accumulate below 620 for buyback