Mumbai, March 31: The board of BSE Ltd. has approved a 2:1 bonus share issuance, granting two free shares for every one share held by investors as of the record date. The announcement was made on Sunday, March 30, marking the second time BSE has undertaken a bonus issue since its listing in 2017.
Second Bonus Issue in Seven Years
BSE, Asia’s oldest stock exchange, previously issued two bonus shares for every one held (2:1) in 2022. Bonus shares allow companies to capitalize on their free reserves, increase Earnings Per Share (EPS), and expand their paid-up capital while reducing reserves. These shares are issued at no additional cost to shareholders, making them an attractive incentive.
Who is Eligible for Bonus Shares?
Only investors who purchase BSE shares before the ex-date will be eligible for the bonus issue. Those who buy on or after the ex-date will not receive the bonus shares.
BSE’s Strong Track Record of Shareholder Returns
Since its listing, BSE has distributed dividends worth over ₹170 per share and conducted two share buybacks, in 2019 and 2023. The latest bonus issue underscores BSE’s continued commitment to rewarding shareholders.
CEO’s Take on Market Trends
BSE MD & CEO Sundararaman Ramamurthy, in a recent interview with CNBC-TV18, stated that BSE is not chasing derivative market share but believes there should be a spread between expiries. When asked about a possible shift in options expiry dates in response to NSE’s move, he commented that no probability can be ruled out, though it is difficult to predict at this stage.
Market Reaction
Following the announcement, BSE Ltd.’s stock surged 16.09% on Friday, closing at ₹5,438. The stock has remained flat so far in 2025, but the latest corporate action could generate renewed investor interest.
