BSE to buy back shares worth Rs 374.80 crore via tender route

The Bombay Stock Exchange (BSE) on July 6 approved buyback of shares worth up to Rs 374.80 crore at a price of Rs 816 per share. The buyback will be done via the tender route, said the exchange.

At 2:20 pm, the stock was quoting at Rs 682.10 on the NSE, indicating that the buyback price is at a 19 percent premium to current level.

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“The resultant equity shares to be bought back at the buyback offer price are 45,93,137 equity shares, representing 3.39 percent of the total number of equity Shares in the total paid-up capital,” said BSE.

A buyback, also referred to as a share repurchase, occurs when a company purchases its own existing shares in order to decrease the number of shares accessible for trading on the open market.

BSE had last announced a buyback in 2019. At that time, the buyback was announced at Rs 680 per equity share through the tender offer route. The total amount of the buyback size was a maximum of Rs 460 crore.

Recently, in a major relief to BSE, the National Stock Exchange (NSE) withdrew its decision to shift the expiry of Nifty Bank derivative contracts to Friday from Thursday. The decision comes after the BSE decided to shift the expiry of Sensex and Bankex to Friday from Thursday following the relaunch of the indices.

“Considering the need for balanced market development and avoidance of concentration risk in the market, BSE has requested NSE to consider shifting the Bank Nifty expiry to any day other than Friday,” a joint statement from the exchanges said.