BSE Ltd. will be issuing two bonus shares for every share its investors hold, the bourse announced on Sunday.
The board approval makes this BSE's second bonus share issue in three years. In February 2022, the exchange issued bonus shares in the same ratio, giving investors two additional shares for every share held.
The company said that the record date for determining eligible shareholders will be announced later.
The bonus issue comes at a time when the company's shares have risen over 100% over the past 12 months. Since its listing in 2017, the stock has increased over 15 times. On Friday, the exchange's stock closed 17% higher at Rs 5,479.80 apiece after the National Stock Exchange deferred the implementation of its Monday expires.
"This may abate concerns around BSE's potential loss of market share and impact on earnings per share — we estimated ~12%," analysts at Jefferies had said in a note following the development. "Clarity on open interest limits is awaited but impact of that is lower for BSE. The stock has retraced majority of its fall, but lower regulatory risks & better markets can aid re-rating," the note added while maintaining a 'hold' rating on the stock.
Since its listing, BSE has issued dividends 22 times and bonus shares two times.
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