BSE To Consider Bonus Share Issue On March 30

BSE Ltd. said on Wednesday that it will consider issuing bonus shares during its board meeting on March 30.

If approved, this will be BSE’s second bonus share issue in three years. In February 2022, the exchange issued a 2:1 bonus share, giving investors two additional shares for every share held.

The announcement came after the company’s shares have risen 94% over the past 12 months. Since its listing in 2017, the stock has increased 15.66 times.

BSE has issued dividends 22 times since debuting on the stock exchanges. As of September 2024, the company had a net cash equivalent of Rs 2,532.38 crore.

UBS Global Research, on March 17, had initiated coverage on the exchange with a 'buy' call. The firm posted a price target of Rs 5,350, implying an upside of 19.31% from Tuesday's closing stock price.

The research firm is optimistic on an improvement in volumes, as volumes moving from NSE have not been fully priced in. They also cited better broker management and the offering of an alternate expiry day to NSE as key triggers for their stance.

UBS noted that NSE being the default exchange put BSE at a disadvantage. This disadvantage kept BSE's cash market share lower, as NSE dominates 93–94% market share. Hence, implementing a common contract note can help generate a combined order book and neutrality among brokers, said the firm.

Shares of the company closed 3.8% lower at Rs 4,474.7 per share, compared to a 0.77% decline in the NSE Nifty 50. It has risen 93.69% in the last 12 months and fallen 15.79% on a year-to-date basis.

Ten out of the 13 analysts tracking BSE have a 'buy' rating on the stock, two recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 5,753.73, implying an upside of 28.6%.