BSE Share Price Rises Nearly 2% Following Announcement of 2:1 Bonus Share Issue

Market Performance

BSE's share price experienced an uptick of nearly 2% during Tuesday's trading session following an announcement regarding issuing a 2:1 bonus share. This increase was observed on April 1, 2025, as the news received a positive response from the market.

Main News

BSE's share price rise was linked to the company's recent 2:1 bonus share distribution declaration. Shareholders are set to receive two ₹2 equity shares for everyone full paid-up equity share of ₹2 each that they own. The issuance is subject to shareholder approval through a postal ballot. The company has yet to announce the record date for determining shareholder eligibility.

This marks the second time since BSE went public in 2017 that the company has proposed bonus shares. In the past, BSE has distributed dividends amounting to over ₹170 per share and conducted share buybacks in 2019 and 2023.

Companies often issue bonus shares to utilize free reserves, increase paid-up capital, and potentially improve earnings per share (EPS). These shares are provided at no cost to the shareholders and are also referred to as free shares. Only investors who hold shares before the ex-date will qualify to receive the bonus shares, while those purchasing shares on or after the ex-date will not.

Company Details

Financial Overview

While the article has not disclosed specific financial data, the company has a history of distributing dividends and undertaking share buybacks. The bonus share announcement is also part of their strategy to manage reserves and enhance shareholder value.

Stock Performance

BSE's stock opened at ₹5,544 per share on the NSE. The stock reached an intraday high of ₹5,575.50 and a low of ₹5,445.30.

Summary

BSE's recent announcement of a 2:1 bonus share issuance has contributed to an almost 2% increase in its stock price. This move reflects the company's ongoing strategy to reward shareholders and manage its financial reserves. The upcoming record date for the bonus shares will determine shareholder eligibility, pending approval via postal ballot.