BSE Share Price Rises Nearly 2% As Bonus Issue Optimism Lingers

Shares of BSE Ltd. rose as much as 1.85% intraday on Thursday, rebounding after snapping a four-session gaining streak in the previous session. Shortly after, the stock pared gains.

The stock has been rallying since the announcement of a two-for-one bonus issue on March 30, briefly hitting a one-month high earlier this month. The bourse announced earlier that its board had approved issuing two bonus shares for every share held. The stock has gained 7.76% since the announcement.

This marks BSE’s second bonus issue in three years, having declared the same ratio in February 2022. The specific record date for identifying eligible shareholders is yet to be announced.

BSE has distributed dividends on 22 occasions in addition to these two bonus share issues.

BSE stock rose as much as 1.85% during the day to Rs 6,040 apiece on the NSE. It was trading 0.77% lower at Rs 5,885 apiece, compared to a 0.39% decline in the benchmark Nifty 50 as of 10:11 a.m. 

It has risen 112.87% in the last 12 months and 11.15% on a year-to-date basis. The relative strength index was at 65.67.

Fourteen out of the 12 analysts tracking BSE have a 'buy' rating on the stock and two recommend a 'hold', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 6,028.42, implying an upside of 0.6%.