BSE Limited Buyback Review, Offers, Price, Record Date, Size & more

In this article, we will discuss about BSE Limited Buyback offer, buyback price, buyback size, BSE Buyback record date, company financial, buyback necessity and its impact on company.

BSE Limited Buyback Details

Buyback Type Tender Offer
Opening Date August 30, 2019
Closing Date September 16, 2019
Buyback Offer Amount Rs. 105,00,00,00,000/-
Buyback No. of Shares 32,30,76,923
Face Value Rs. 2
Date of Buyback Approval May 7, 2019
Date of Public Announcement  July 17, 2019*
Buy Back Price Rs. 325/-
Buy Back Premium 22.16%
Date of Board Meeting April 16, 2019

LAST DATE OF RECEIPT OF COMPLETED TENDER FORMS AND OTHER SPECIFIED DOCUMENTS BY THE REGISTRAR TO THE BUYBACK: Wednesday, September 18, 2019 by 5:00 p.m.


BSE Buyback Opening and Closing Date

The starting and closing date of this buyback is Friday, August 30, 2019 and Monday, September 16, 2019.

BSE Buyback Cash Offer

The Cash Offer to Buy-back up to 67,64,705 fully paid-up equity shares of the Company of face value of Rs. 2 each, representing 13.06% of the total number of equity shares.

BSE Buyback Record Date

The decided record date is Monday, July 29, 2019.

BSE Buyback Price

At a price of Rs.680/- per Equity Share.

BSE Buyback Offer Size

Number of Equity Shares proposed to be bought back i.e., up to 67,64,705 Equity Shares multiplied by the Buyback Offer Price (Rs. 680/- per Equity Share) aggregating up to Rs. 460 crore (Rupees Four Hundred and Sixty Crore only).

BSE Limited Buyback Acceptance Query

You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.


BSE Limited Buyback Acceptance Ratio

Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.

Acceptance Ratio Total Shares Accepted Buyback Price Buyback Amount Profit Profit%
20% 200 680 136000 32800 6.36%
40% 400 680 272000 65600 12.71%
60% 600 680 408000 98400 19.07%
80% 800 680 544000 131200 25.43%
100% 1000 680 680000 164000 31.78%

Profit is calculated from 26th August 2019 share price i.e. Rs.516 per share of BSE Limited.

According to the above table, if a share owner applies for 1000 shares of BSE limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.680 per share & receive Rs.32800 as profit amount & 6.36% profit percentage on selling these 200 shares back to the company.

Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.680 & receive a profit of Rs.98400 @ 19.07% profit percentage.


BSE Limited Buyback Overview

BSE Limited BuybackThe Company was incorporated as a public company under the name “Bombay Stock Exchange Limited” under the provisions of the Companies Act, 1956 and received a certificate of incorporation dated August 8, 2005. Subsequently, the name of the Company was changed to “BSE Limited” and received a fresh certificate of incorporation pursuant to change of name dated July 8, 2011. The registered office of the Company is at 25th floor, P. J. Towers, Dalal Street, Mumbai 400 001, Maharashtra, India.

It is engaged in providing a capital-raising platform and a platform for trading in equity, debt instruments, derivatives and mutual funds. The Company also provides a platform for trading in equities of small-and-medium enterprises (“SME”).

Company operates in three primary lines of business, namely: (i) Listing business consisting of the primary market, which relates to the issuance of new securities; (ii) Market business consisting of trading in various types of securities permitted by SEBI from time to time; and (iii) Data business consisting of the sale and licensing of information products.

Pursuant to the BSE (Corporatization and Demutualization) Scheme, 2005 (the Scheme) notified by SEBI on May 20, 2005, the Company completed Demutualization and Corporatization in May 2007 bringing about the separation of the ownership and management.

During April 1, 2018 to March 31, 2019, the Company achieved consolidated revenue from operations of Rs. 45,030 lakh (Rupees Forty Five Thousand and Thirty Lakh only) which was lower by 11.22% over consolidated revenue from operations of the previous year.


Company Finances – BSE Limited

The salient financial information of the Company as extracted from the audited standalone financial statements for the three years ended March 31, 2019, March 31, 2018 and March 31, 2017 are as under:

[In Rs. Lakhs]

Particulars 12 Months period ended March 31
(Audited)
2019 2018 2017
Total Income 50,69,237 47,18,960 48,61,777
Total Expenses (excluding finance cost, depreciation & amortization) 39,36,271 35,75,615 36,49,078
Interest 52,496 38,430 39,223
Depreciation and amortization expenses 93,429 1,01,483 1,04,766
Profit before tax 9,87,041 10,03,432 10,68,710
Provision for tax
(including Deferred Tax)
2,25,647 2,31,148 2,52,542
Profit /(Loss) after tax 7,61,394 7,72,284 8,16,168
Equity Share Capital 1,20,679 90,480 48,618
Other Equity
Networth 49,39,199 42,26,259 46,70,561
Total Debt (Excluding working capital loans) 2,200 7,242 1,14,626

BSE Limited Buyback Dates

Date of Board Meeting approving the Buyback May 7, 2019
Date of publication of Public Announcement for Buyback July 17, 2019*
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders July 29, 2019
Buyback Opening date August 30, 2019
Buyback Closing date September 16, 2019
Last Date of verification of Tender Forms by the Registrar September 24, 2019
Last date of intimation to NSE regarding Acceptance or non-acceptance of Equity Shares by the Registrar to the Buyback September 24, 2019
*Last date of Settlement of Bids on the NSE Limited September 25, 2019
Last date of payment to Eligible Shareholders/ return of unaccepted demat shares by NSE to Eligible Shareholders September 25, 2019
*Last date of Extinguishment of Equity Shares October 1, 2019

Details of Public Announcement

Public announcement dated July 15, 2019 in connection with the Buyback in accordance with the SEBI Buyback Regulations which was published on July 17, 2019 in all editions of the English and the Hindi national daily newspapers, namely Financial Express and Jansatta, respectively, and the Mumbai edition of the Marathi daily newspaper namely, Navshakti (Marathi being the regional language of Mumbai wherein the registered office of the Company is located)

Publication Language Edition
Financial Express English All editions
Jansatta Hindi All editions
Navshakti Marathi Mumbai

Necessity of BSE Limited Buyback

The Buyback is being undertaken for the following reasons:

  • The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders
  • Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of number of Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the small shareholders.
  • Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
  • The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.

Impact of BSE Limited Buyback on the Company

The Buyback is proposed, considering the accumulated surplus funds available with the Company, being in excess of the surplus amount needed to be retained by the Company for future growth of the Company as envisaged by the Board.

Buyback may lead to reduction in existing Equity Shares, improvement in ‘earnings per share’ and enhanced return on equity, assuming that the Company would earn similar profits as in the past.

Consequent to the Buyback and based on the number of Equity Shares bought back from the Non-Resident Shareholders, Indian financial institutions, banks, mutual funds and the public including other bodies corporate, the shareholding under each category may undergo a change.

The Company is debt free. Therefore, as required under Section 68(2)(d) of the Companies Act and Regulation 4(ii) of the SEBI Buyback Regulations, the ratio of the aggregate of secured and unsecured debts owed by the Company shall not be more than twice its paid-up Equity Share capital and free reserves post completion of the Buyback on a consolidated and standalone basis.

Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2018) Pre Buy-back Post Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs) 1,85,872 1,39,872
Return on Net worth (%) 10.82% 14.37%
Earnings Per Share (Rs) 38.08 43.68
Book Value per Share (Rs) 358.90 310.66
P/E as per the latest audited standalone financial statements 16.73 14.59
Total Debt / Equity Ratio NA NA

Basis of Calculating BSE Buyback Price

The Buyback Price has been arrived at after considering various factors such as

  • Premium of 14.80 % over the volume weighted average market price of the Equity Shares on NSE, during the three months preceding February 19, 2019, being the date of intimation to NSE for the Board Meeting to consider the proposal of the Buyback (“Intimation Date”).
  • The premium of 19.87 % over the volume weighted average market price of the Equity Shares on NSE for two weeks preceding the Intimation Date.
  • Premium of 24.45 % over the closing price of the Equity Shares on NSE as on the Intimation Date.

More on BSE Buyback Price Calculation

The Buyback Offer Price being Rs. 680/- (Rupees Six Hundred and Eighty Only) per Equity Share has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average market prices of the Equity Shares on NSE, i.e., the stock exchange where the Equity Shares are listed, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the earnings per Equity Share.

The closing market price of the Equity Shares as on the Intimation Date was Rs. 546.40 on NSE.


Source of Funds for the Buyback

Assuming full acceptance, the funds that would be utilised by the Company for the purpose of the Buyback would be Rs. 460 crore (Rupees Four Hundred and Sixty Crore only) excluding the Transaction Costs.

The funds required for implementation of the Buyback (including the Transaction Costs) will be sourced out of the free reserves of the Company (including securities premium account) or such other source as may be permitted by the SEBI Buyback Regulations and the Companies Act.

The Company confirms that the funds for the Buyback will be made available out of its internal accruals.


BSE Limited – Manager to the Buyback

Edelweiss Financial Services Limited
14th Floor, Edelweiss House, Off. C.S.T. Road, Kalina,
Mumbai – 400 098, Maharashtra, India
Tel. No.: +91 22 4009 4400
Fax No.: +91 22 4086 3610
Email: [email protected]
Contact Person: Disha Doshi
Website: www.edelweissfin.com
SEBI Registration No.: INM0000010650
CIN: L99999MH1995PLC094641
Validity Period: Permanent

BSE Limited – Registrar to the Buyback

Karvy Fintech Private Limited
Karvy Selenium Tower B Plot 31 & 32, Gachibowli, Financial District, Nanakramguda Serilingampally, Hyderabad Rangareddi,
Telangana 500 032, India
Tel. No.: +91 40 6716 2222
Fax No.: +91 40 2343 1551
Email: [email protected]
Contact Person: M Murali Krishna
Investor Grievance Id: [email protected]
Website: www.karvyfintech.com
SEBI Registration No.: INR000000221
CIN: U72400TG2017PTC117649
Validity Period: Permanent

BSE Limited Contact Details

Company Contact Details
BSE LIMITED
CIN: L67120MH2005PLC155188
Registered Office & Correspondence Address: 25th Floor, P.J. Towers, Dalal Street, Mumbai- 400 001, India
Tel. No.: +91 22 2272 1233/34 | Fax No.: Not available
Contact Person: Smt. Prajakta Powle, Company Secretary and Compliance Officer
E-mail: [email protected] | Website: www.bseindia.com

 


BSE Limited Buyback News

News 1 – Buyback PDF / Letter of Offer [Download]


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