Bombay Stock Exchange (BSE), on Thursday, July 6, approved a share buyback of up to Rs 375 crore shares via a tender route and set the buyback price at Rs 816 per share. The price set is a premium of 19% over today’s price. The BSE shares were trading at Rs 683.40 apiece post the share buyback news.

This will be the third share buyback issued by the country’s only listed equity institute since its listing in January 2017.

Previously, BSE had done a Rs 166 crore open market buyback in 2018 at Rs 822 per share. In 2019, the stock exchange did a tender route buyback worth Rs 460 crore, where it repurchased its share at Rs 680 apiece.

A share buyback is when the company buyback its own shares from shareholders and is seen as a tax-efficient way to give cash back to its stakeholders. By way of share buyback, a company can reduce the number of shares available in the market and thereby increase the real value of the stock.

Earlier, BSE had declared a 2:1 bonus issue last year, issuing two bonus shares for every share held.

BSE MD and CEO Sundararaman Ramamurthy said, “FY2023 was a challenging but pivotal year for BSE. We made important progress regarding our priorities and have taken significant steps to improve our product profile. As we move forward, there is a significant opportunity to continue to expand and evolve the products and services within our core business,”