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BSE Ltd has decided to go for share buyback, the exchange informed the NSE, where it is listed. Discussion on the buyback will be taken up in the forthcoming board meeting, it added.
The BSE has more than Rs 2,900 crore net worth and close to Rs 1,700 crore cash on its balance sheet. It can start buyback after July first week, the exchange said. The exchange can use 25 per cent of its cash balance for buyback.
Last year, BSE went for a buyback of Rs 166 crore worth of shares over 6 months. Currently, BSE networth is less than the book value. If you add up the actual value of the CDSL shares, value of buildings etc, BSE is running at more than 30 per cent lower market cap compared to assets, analysts say.
BSE has more than 150,000 shareholders. BSE opened its IPO at Rs 804 in January 2017. The prices reached over Rs 1,180 after listing. However, later several banks sold their stake due to the pressure on their balance sheet. It is running at PE of 14 or less compared to 25 to 30 of MCX and 50 plus of IEX. Current price is close to Rs 550
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