The Bombay Stock Exchange (BSE) on July 6 approved a buyback proposal of shares worth up to Rs 374.80 crore at a price of Rs 816 per share. The buyback will be done through tender route, said the exchange.
BSE would buy back up to 45,93,137 shares, representing 3.39 per cent of the total number of equity shares in the total paid-up capital of the company as on 31 March.
However, the buyback offer price represents a premium of 34.09 per cent over the closing price of the stock on NSE on 30 June, the day before the date when information for the board meeting was sent to NSE.
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The buyback offer is subject to the approval of the shareholders via special resolution at the ensuing 18th annual general meeting and all other required statutory approvals.
On Thursday, the stock ended 3.68 per cent higher at Rs 705.40 on the National Stock Exchange (NSE).
The buyback offer size represents 25 per cent and 19.64 per cent of the aggregate of the company’s paid-up equity capital and free reserves, according to the audited results for the fiscal year 2022-23.
BSE last announced a share repurchase in 2019. At that time, the buyback was announced at Rs 680 per equity share via the offer route. The total amount of the buyback was a maximum of Rs 460 crore.
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In a major relief to BSE, the NSE withdrew its decision to shift the expiry of Nifty Bank derivative contracts to Friday from Thursday. The decision followed BSE’s announcement 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.
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