The Bombay Stock Exchange (BSE) has made a significant announcement, approving a 2:1 bonus share issue for its shareholders. This decision, confirmed during a board meeting held on Sunday, March 30, 2025, means that for every one share held, shareholders will receive two additional shares at no extra cost. This marks the second time BSE has issued bonus shares since its listing in 2017, with the last issuance occurring in 2022.
According to the official filing, the bonus shares will be issued from the Capital Redemption Reserves and General Reserves as available on December 31, 2024. However, the record date for the bonus share issue has yet to be determined. Only investors who hold BSE shares before the ex-date will be eligible for the bonus shares, which is a common practice among companies to reward their loyal shareholders.
BSE, established in 1875 as 'The Native Share & Stock Brokers' Association,' is Asia’s first and fastest stock exchange, boasting a trading speed of just 6 microseconds. It became India's first listed stock exchange in 2017, and since then, it has maintained a strong record of rewarding its shareholders through dividends and buybacks.
In the past, BSE has consistently rewarded its investors. Since going public, the exchange has paid over Rs 170 per share in dividends and conducted two share buybacks—one in 2019 and another in 2023. Most recently, in May 2023, BSE announced a dividend of Rs 12 per share, with an ex-dividend date on August 4, 2023. Following this, in June 2024, the exchange declared a final dividend of Rs 15 per share, with the ex-dividend date set for June 14, 2024.
On March 28, 2025, BSE Limited shares surged by 16.09%, closing at Rs 5,438. This spike in share price indicates strong market activity and investor confidence. However, it is noteworthy that the stock has remained largely flat throughout 2025 so far. The recent surge followed a proposal from the Securities and Exchange Board of India (SEBI) aimed at standardizing expiry days for equity derivatives across stock exchanges. This regulatory move is expected to bring more predictability for traders and enhance market stability.
Analysts at Jefferies have estimated that the impact of the SEBI proposal on BSE’s earnings per share (EPS) could be around 12 percent, which is lower than earlier concerns. Despite a 3 percent decline since the start of the year, BSE’s stock has gained a remarkable 104 percent over the past year, showcasing its resilience and growth potential.
With the announcement of the bonus share issue, BSE aims to capitalize on its free reserves while increasing its paid-up capital. Bonus shares are typically issued to enhance earnings per share and provide existing shareholders with additional shares without any further financial investment.
Market analysts have expressed optimism regarding BSE's future performance. Technical Analyst Riyank Arora from Mehta Equities Ltd commented on BSE's bullish momentum, stating that the stock is expected to achieve near-term targets of Rs 5,900 to Rs 6,000, with the potential to reach new all-time highs as the rally continues. This positive outlook indicates that BSE is well-positioned to maintain its market share and continue rewarding its investors.
As part of the regulatory framework, BSE has also announced that the trading window for dealing in its securities will remain closed from March 26, 2025, until April 1, 2025, inclusive. This closure is in compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, ensuring that all designated persons are informed not to trade in the company’s securities during this period.
In conclusion, the BSE's decision to issue a 2:1 bonus share is a clear indication of its commitment to rewarding shareholders and enhancing its capital structure. With a robust history of dividends and buybacks, BSE continues to be a significant player in the Indian financial markets, fostering growth and stability.
