BSE’s board on Thursday approved a share buyback of up to Rs 375 crore through the tender route. The buyback has been approved at Rs 816 per share, which is at a premium of 19 per cent from Thursday’s price (July 6).
The buyback will be done through a tender offer and the record date will be decided by the buyback committee, according to a regulatory filing.
“The resultant equity shares to be bought back at the buyback offer price are 4,593,137 equity shares, representing 3.39 per cent of the total number of equity Shares in the total paid-up capital,” BSE said.
Under a share buyback, the company buys back its own shares from shareholders. It is seen as a tax-efficient way to give cash back to investors. It reduces the number of shares available for trading in the market.
BSE has set the price for the share buyback at Rs 816 per equity share, taking the total buyback programme to Rs 374.80 crore.
The buyback offer is subject to the approval of the shareholders by way of a special resolution at the ensuing 18th annual general meeting and all other applicable statutory approvals, it added.
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