Shares of BSE Ltd. jumped as much as 6 per cent on Thursday, March 27 after the company announced that its board will discuss a proposal to issue bonus shares on Sunday, March 30. In early trade, BSE shares surged to an intraday high of Rs 4,735 per share after giving a gap-up opening. With this, the stock has snapped its three-day losing streak.
BSE shares have rallied more than 90 per cent over the past year. Since its debut in 2017, it has rallied over 1,200 per cent, turning investors wealth by 13 times.
BSE is the world's sixth-largest stock exchange with a market capitalisation exceeding Rs 400 lakh crore.
BSE Bonus Share History
If declared, this will be the stock exchange’s second bonus issue since 2022. In February 2022, the company’s board issued bonus shares in the ratio of 2:1, giving investors 2 additional shares for each one held.
Bonus shares are extra shares given to existing shareholders at no additional cost, based on the number of shares they already own. These shares come from the company’s accumulated earnings, which aren’t paid out as dividends but are instead turned into free shares for shareholders.
Companies issue bonus shares to attract more retail investors and expand their equity base. When a company’s share price gets too high, it can be hard for new investors to buy. By issuing bonus shares, the price per share goes down, making it easier for new investors to buy. However, the company’s overall capital remains unchanged, even after the bonus shares are issued.
BSE Dividend History
BSE has paid out dividends 11 times since it got listed. It issues a dividend of Rs 15 per share in 2024, Rs 12 per share in 2023, Rs 13.50 per share in 2022, Rs 21 per share in 2021, Rs 17 per share in 2020, and Rs 25 in 2019. In 2018, BSE issued a total of Rs 41 per share, which included two interim dividends of Rs 5 each and a final dividend of Rs 31.
The 2018 dividend consisted of a Rs 5 interim payout and a final dividend of Rs 23. Similarly, in 2017, there was a Rs 5 interim dividend and a final dividend of Rs 23 per share.
As of the current market price, BSE’s dividend yield stands at 0.32 per cent. The dividend yield of a stock shows how much money a company pays out to its shareholders as dividends per share per year in relation to its stock price.
BSE had also announced two share buybacks – one in 2019 and the other in 2023. A share buyback is when a company buys back its own shares from the market using its own money. This reduces the total number of shares in circulation, which can make the remaining shares more valuable.
