BSE shares surge 7% as stock turns ex-bonus; analysts weigh in

Shares of BSE Ltd registered strong gains in Friday's trade, even as the stock turned ex-bonus in a 2:1 ratio. The stock surged as much as 6.67 per cent to hit a day high of Rs 2,488 before easing slightly to Rs 2,386, up 2.29 per cent on the day. Due to the corporate action, some trading platforms and web searches may display the stock as reflecting a 66 per cent drop, adjusting for the bonus issue in line with the revised share count.

BSE has issued two bonus shares for every one share held as of the record date (May 23). Shareholders on record will be eligible to receive these bonus shares. However, investors purchasing the stock on or after the ex-bonus date will not be entitled to the bonus allotment.

The scrip, which closed at Rs 7,015 on Thursday, today opened at Rs 2,358 following the adjustment for the 2:1 bonus issue. BSE has announced that May 26 will be the deemed date of allotment for the bonus shares, with the effective listing scheduled for May 27. The company's board had approved the 2:1 bonus issue on March 30.

"The structural tailwinds will continue. A significant increase in demat account additions is anticipated, and the annuity business is likely to grow at a healthy pace," Mayuresh Joshi, Head-Equity Research at William O'Neil India, told Business Today.

He also mentioned that the stock has already seen a significant run-up, but in an underpenetrated market like India — where the number of demat account holders is expected to grow substantially — the demand for trading platforms is likely to persist. 

"This includes services for trade execution and annuity-related offerings for corporates. Given these tailwinds, I believe the downside optionality in the market remains limited. I'm not saying you should go out and invest right away, but there's a good chance the exchange will continue to perform well," he added.

On an immediate basis, BSE's stock is currently exhibiting sideways momentum and I'm not seeing any clear directional trend at this point, said Kkunal V Parar, Vice-President of Technical Research and Algo at Choice Broking. Given the lack of conviction, he recommended a 'wait-and-watch' approach for now.

On the earnings front, BSE posted a 362 per cent year-on-year (YoY) surge in its net profit, at Rs 494 crore, during the January-March 2025 quarter (Q4 FY25). During the quarter under review, the country's oldest exchange clocked a revenue from operations at Rs 847 crore, up 75 per cent YoY.