BSE Limited Buyback History: A Comprehensive Review (2018–2023)

Founded in 1875, Bombay Stock Exchange (BSE Ltd) is Asia’s oldest stock exchange and the world’s fastest with a speed of 6 microseconds. It provides trading across equity, debt, derivatives, mutual funds, and currencies. BSE became the first listed Indian stock exchange in 2017 and developed the S&P BSE SENSEX in 1986.

Table of Contents

1. Overview of BSE Buybacks
2. Buyback Event 1 – FY 2017–18
3. Buyback Event 2 – FY 2019–20
4. Buyback Event 3 – FY 2023–24
5. Comparative Summary of All Buybacks
6. Investor Takeaways
7. Conclusion
8. FAQs

Overview of BSE Buybacks

BSE Limited (formerly Bombay Stock Exchange) has strategically returned capital to shareholders through three major buybacks since its listing in 2017. These buybacks not only optimised the company's capital structure but also provided value realization opportunities to shareholders, particularly retail investors.BSE Limited has actively leveraged buybacks as a tool to return surplus capital to shareholders while improving financial ratios. Since its listing in 2017, it has conducted three buybacks using both open market and tender routes, reflecting strategic intent and shareholder-centric governance.

Wrap-Up: BSE’s buyback strategy showcases a consistent, thoughtful approach to capital allocation, aimed at optimising structure and enhancing shareholder value.

Buyback Event 1 – FY 2017–18

Background and Structure

• Type: Open Market (NSE)
• Maximum Buyback Size: ₹166 Cr
• Maximum Price per Share: ₹1,100
• Shares to be Repurchased: Up to 15,09,345 equity shares (~2.8%)
• Buyback Period: Up to 6 months from start date

Objectives

• Return surplus funds to shareholders
• Enhance EPS and ROE
• Improve capital efficiency without affecting operations or growth

Capital Structure Snapshot (as of Jan 22, 2018)

• Pre-Buyback Paid-Up Capital: ₹107.62 Cr
• Post-Buyback Paid-Up Capital (assumed): ₹104.59 Cr
• Promoter Holding: None
• Public Holding Requirement: Maintained at ≥51% as per SECC Regulations

Regulatory & Execution Highlights

• Board Approval: Jan 15, 2018
• Merchant Banker: Edelweiss Financial Services
• Compliance Officer: Prajakta Powle
• Escrow Mechanism: ₹45.65 Cr security via Yes Bank (cash + bank guarantee)

This was BSE’s first buyback since listing, conducted through the open market route on NSE. With a buyback cap of ₹166 crore and a maximum price of ₹1,100 per share, it aimed to improve capital efficiency, enhance EPS, and optimize the capital structure without disrupting operations.

Wrap-Up: The 2017–18 open market buyback marked BSE’s initial step in rewarding shareholders while maintaining regulatory compliance and capital discipline.

Buyback Event 2 – FY 2019–20

Buyback Overview

• Type: Tender Offer
• Total Size Approved: ₹460 Cr
• Buyback Price: ₹680 per share
• Methodology: Proportionate via NSE's Acquisition Window
• Mechanism: Broker-driven via Edelweiss Securities
• Registrar: Karvy Fintech Pvt. Ltd.

Financial Basis

Shareholder Categories

• Small Shareholders (holdings ≤ ₹2L): 15% reserved
• General Category: Balance allocation

Settlement and Compliance

• Demat-only participation (post-April 2019)
• PAN-based clubbing for fairness
• Auditor verified solvency, compliance with 2:1 debt-equity ratio
• Regulation 38 exemption (no promoter group)

In FY 2019–20, BSE executed a ₹460 crore tender offer at ₹680 per share. This event adopted a proportionate allocation mechanism via the NSE Acquisition Window. Notably, 15% was reserved for small shareholders, and all regulatory thresholds were met without promoter involvement.

Wrap-Up: The second buyback demonstrated BSE’s balanced approach—ensuring regulatory compliance, transparency, and equitable benefit distribution across shareholder categories.

Buyback Event 3 – FY 2023–24

Overview

• Buyback Route: Tender Offer (Stock Exchange mechanism via NSE)
• Buyback Price: ₹1,080 per share
• Total Buyback Size: ₹374.8 Cr
• Shares Repurchased: 8,58,370 shares (approx. 2.1% of total equity)
• Record Date: February 22, 2024

Shareholder Acceptance

• Small Shareholders: 100% acceptance
• General Category: ~44.3% acceptance

Objectives & Impact

• Capital return, EPS enhancement, improved investor confidence
• ~2.1% equity extinguished
• Boost to ROE and EPS post-buyback
• Highly efficient execution and transparent disclosures

The 2023–24 buyback, worth ₹375 crore at ₹1,080 per share, achieved 100% acceptance among small shareholders and 44.3% for general investors. The move extinguished around 2.1% of equity, delivering an immediate boost to EPS and ROE and reinforcing market confidence.

Wrap-Up: BSE’s most recent buyback set a benchmark for efficiency and investor trust, with high retail participation and meaningful post-buyback financial uplift.

Comparative Summary of All Buybacks

A side-by-side comparison of all three buybacks reveals BSE’s evolving execution style—from open market flexibility to tender offer precision—matched with rising shareholder value and increasing buyback premiums.

Wrap-Up: BSE’s buyback history reflects an upward trend in sophistication, size, and stakeholder benefit, underlining a maturing capital strategy over time.

Investor Takeaways

• Strong governance: All buybacks were SEBI-compliant, with transparency and regulatory diligence.
• Retail-friendly: Reserved category ensured fair access to small shareholders.
• Consistent capital efficiency: BSE utilized surplus reserves effectively across cycles.
• Improved metrics: Buybacks consistently boosted EPS, ROE, and overall investor sentiment.

Conclusion

BSE Limited’s buyback history between 2018 and 2023 reflects a disciplined and shareholder-centric capital allocation strategy. The company has used both open market and tender routes, tailored to specific market conditions and shareholder needs. Each buyback strengthened financial ratios, improved market perception, and offered value to long-term investors.

With consistent regulatory compliance and zero promoter interference, BSE’s buyback strategy stands out as a benchmark for capital market institutions in India.

FAQs

1. What is a share buyback, and why does BSE conduct them?
   A share buyback is when a company repurchases its own shares from the market or shareholders, reducing the number of outstanding shares. BSE conducts buybacks to return surplus funds, boost financial ratios like EPS and ROE, and enhance shareholder value.
2. How many buybacks has BSE Limited completed since its listing?
   Since its listing in 2017, BSE Limited has completed three major buybacks — in FY 2017–18, FY 2019–20, and FY 2023–24 — using both open market and tender offer methods.
3. What was the BSE buyback price in 2023?
   In the 2023–24 buyback, BSE repurchased shares at ₹4,600 per share via a tender offer route, targeting a total buyback size of ₹374.8 crore.
4. Who benefited most from BSE’s 2023 buyback offer?
   Small shareholders (those holding shares worth ₹2 lakh or less) benefited significantly, with 100% acceptance of their tendered shares during the 2023 buyback.

5. What is the difference between open market and tender offer buybacks?
   In an open market buyback, shares are bought directly from the stock exchange at prevailing prices. In a tender offer, shareholders submit shares at a fixed price, and shares are accepted proportionately based on eligibility and quotas.
6. Was there any promoter participation in BSE buybacks?
   No. BSE Limited has no identifiable promoter group, so all buybacks were conducted without promoter participation, ensuring equitable treatment for public shareholders.
7. How did BSE’s buybacks impact EPS and ROE?
   BSE’s buybacks positively impacted its Earnings Per Share (EPS) and Return on Equity (ROE) by reducing outstanding shares and returning surplus capital, making financial metrics stronger post-buyback.
8. Is BSE planning more buybacks in the future?
   As of the last update in 2025, BSE has not announced any new buybacks. However, given its track record, future buybacks remain a possibility if surplus reserves accumulate.