Mumbai, India, January 15, 2018, BSE Ltd. (BSE), Asia’s oldest and World’s fastest exchange with a speed of 6 microseconds, today announced Buyback of its Equity Shares.
The Board of Directors of the Company at its meeting held today has inter-alia approved the Buyback proposal for purchase by the Company of its fully paid-up equity shares of face value of ? 2/- each ("Equity Shares" and such buyback, the "Buyback"), from the shareholders/beneficial owners of the Company, at a price not exceeding ? 1,100 (Rupees One Thousand and One Hundred Only) per Equity Share ("Maximum Buyback Price") from the open market through stock exchange mechanism in such manner as may be prescribed in the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 (“Buy-back Regulations”) and the Companies Act, 2013 (“Act”) (including any statutory modification(s) or re-enactment of the Act or Buy-back Regulations, for the time being in force).
The Buyback shall not exceed Rs. 166.00 crore (Rupees One Hundred Sixty Six crore only), excluding brokerage costs, fees, turnover charges, taxes such as securities transaction tax and goods and service tax (if any), stamp duty and other transaction charges ("Maximum Buyback Size"). The Maximum Buyback Size represents 9.99% of the aggregate of the Company’s paid-up Equity Share capital and free reserves based on the standalone audited financial statements of the Company as at March 31, 2017, which is in compliance with the maximum permissible limit of 10% of the paid-up equity share capital and free reserves in accordance with Section 68(2) of the Companies Act, 2013.
The Board noted that the Company is professionally managed and does not have any identifiable promoters or promoter groups and persons in control.
The Public Announcement setting out the process, timelines and other statutory details will be released in due course in accordance with the Buy-back Regulations. The dates of the Buyback offer will be mentioned in the public announcement. The Board has formed a Buyback Committee (the "Buyback Committee") and has delegated its powers to the Buyback Committee to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the Buyback.
At the Maximum Buyback Price and for Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 15,09,090 (Fifteen Lakh Nine Thousand Ninety Only) Equity Shares (“Maximum Buyback Shares”) (comprising around 2.80% of the existing paid up Equity Share capital). If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the indicative Maximum Buyback Shares (assuming full deployment of Maximum Buyback Size) but will always be subject to the Maximum Buyback Size.
Commenting on the buyback, Shri S. Ravi, Chairman, BSE Limited, said: “This buyback plan demonstrate the Board’s confidence in our future, our commitment to delivering values to all of our stakeholders and strong Balance Sheet. The intention behind the BSE’s buyback is two fold – (a) take cognizance of the views and requests from its international and domestic shareholders and (b) improve BSE’s valuation for long term shareholders.”
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. India INX a wholly owned subsidiary of BSE is India’s first international exchange in India based out of GIFT City Gandhinagar. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
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