Read on the application
Buyback Stock: The shares of the company listed in the stock market – BSE Limited (BSE Stock) are increasing continuously. The stock has gained more than 28 percent in the last four trading days. In fact, the company has already allowed the buyback offer price to increase. A record date has also been fixed for this. Shares of BSE Ltd are getting support due to this news.
What the company said
On Friday, BSE Ltd said the company’s board has approved an increase in the offer price for the proposed share buyback. The BSE share buyback price has been raised to ₹1,080 per share from the previous ₹816. The Company has fixed September 14, 2023 as the record date for the purpose of determining the qualifications and names of shareholders. Following the news, shares of BSE Ltd rose nearly 6 percent on the National Stock Exchange (NSE) in intra-day trade on Monday to Rs. 1,197.95 was touched. The stock also has a 52-week high.
The company is going to raise ₹99 crore, is listed on BSE, priced at ₹1 per share.
How fast since July 7th
Let us tell you that in its meeting held on July 6, the Board of Directors of BSE Limited decided Rs. 816 allowed the buyback. For this, buyback of 4.59 million equity shares of face value of Rs 2 was approved. Its total amount will be Rs 374.80 crore. Since July 7, the BSE share price has risen 72 percent. Meanwhile, in the last six months, it has more than doubled, or nearly 150 percent, compared to a 10 percent rise in the Nifty 50.
What is a buyback?
Explain that a buyback is a method by which a company buys its own shares from investors. Usually companies come up with buyback proposals to equalize liquidity. It is offered to investors at a premium price. There is a record date for this, which is also a criterion for determining eligibility for buyback.