BSE board approves 67.6 lakh share buyback, declares huge dividend

Mumbai: BSE Limited (earlier known as Bombay Stock Exchange) plans to buy back its fully paid up equity shares of Rs 2 each at Rs 680 per equity share through tender offer route.

The total amount of buyback size will be a maximum of Rs 460 crore. The company proposes to buy back 67.64 lakh equity shares an offer price, representing 13.06 per cent of the total paid-up equity capital.

The buyback offer size represents 24.73 per cent of the aggregate of the total paid up capital and free reserves.

Meanwhile, BSE reported a standalone net profit of Rs 201.05 crore during 2018-19. The operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) was Rs 25.32 crore as per standalone results.

The board recommended payment of a dividend of Rs 25 per equity share of the face value of Rs 2 each. After taking into account the interim dividend of Rs 5 per share paid in the month of December 2018, the total dividend for the financial year stands at Rs 30 per equity share of the face value of Rs 2 each.

The dividend payout ratio is 97 per cent. The record date for determining eligibility for the final dividend is June 28 and the payment will be made on or before August 13.

In the fourth quarter of FY 19, BSE’s operational revenue went up 11 per cent to Rs 115.69 crore from Rs 104.68 crore in the previous quarter.

The operating EBITDA turned positive to Rs 2.38 crore from negative Rs 4.55 crore. The Q4 FY19 net profit was up 4 per cent to Rs 51.86 crore from Rs 50.07 crore in the previous quarter.

“BSE continues to grow from traditional stock exchange platform to an agile, high-tech e-commerce platform for distribution of financial products with the ability to integrate many more services as well as products,” said Managing Director and Chief Executive Officer Ashishkumar Chauhan.

“Currency derivatives, commodity derivatives, India International Exchange, bond distribution, SME, OFS, and IPO have emerged as an important market where BSE has acquired a good market share on the back of better technology, excellent services and lower pricing,” he said in a statement on Tuesday after market closing hours.

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