BSE shares up 12%; Check targets, bonus issue meeting date, price movement & more

Shares of BSE surged as much as 12 per cent during the trading session on Friday as the capital markets regulator SEBI issued a consultation paper on future and options (F&O) equity derivative expiry day, suggesting to keep all the equity derivative contracts expiry on Tuesday or Thursday.
 

Besides this, BSE is set to announce bonus shares for its investors. The company board of BSE will meet on March 30 to consider a proposal for the issuance of bonus shares. However, BSE has not announced the bonus record date or ratio in this filing. It may announce the bonus record date along with the ratio on March 30 or later.
 

Shares of BSE surged as much as 12 per cent to Rs 5,239.95 on Friday, commanding a total market capitalization close to Rs 71,000 crore. The scrip had settled at Rs 4,684.35 in the previous trading session. The stock is still 15 per cent below its 52-week high at Rs 6,133.40 hit on January 20, 2025.

Shares of BSE have zoomed more than 5,200 per cent in the five years, while the stock has rallied nearly 115 per cent in the last one year. It is up 45 per cent in the last six months period.


The consultation paper, which proposes bourses to seek nod to modify or launch contract expiry day, is seen as a major positive for BSE, which may ease its concerns. The National Stock Exchange of India (NSE), its arch rival and largest F&O exchange in the world, has also deferred its circular changing weekly expiry day to Monday from existing Thursday.

Commenting on the development, overseas brokerage firm Jefferies said that SEBI's push to spread out F&O expiry days may ease concerns for BSE over market share losses and estimated 12 per cent impact on EPS. NSE may revert back to Thursday expiry, while BSE shall stay with Tuesday, it reckons.

"The stock has attracted most of its fall and the lower regulatory risks and better market conditions could aid re-rating of the stock," said Jefferies. The foreign broker has a 'hold' rating on the exchange with a target price of Rs 5,250. To recall, shares of BSE had corrected nearly 30 per cent from its 52-week high in the recent, but the stock has staged a sharp rebound.
 

Ventura Securities recently initiated coverage on BSE with a 'buy' rating, citing that BSE is attractively valued relative to its growth potential. Its financial estimates are significantly conservative considering the recent sharp drawdowns in market volumes.

"Hence any reversion to mean will result in significant operating leverage. Market share equality with NSE would mean an optionality upside way above our estimates," it added with a target price of Rs 5,422 on the stock. Ventura cited regulatory changes affecting derivatives volume, and competition from NSE and MSEI as the key risks for the company.
 

The implementation of this proposal is expected to be positive for BSE. Considering the shift in expiry of NSE contracts to Monday from Apr’25, BSE’s volumes are expected to be impacted. BSE already has contract expiry on Tuesday, NSE will have to probably stick to Thursday expiry, which will result in a steady growth trajectory for BSE, said Motilal Oswal Financial Services. 
 

"With BSE expiry ahead of NSE, the benefit of time decay is expected to remain intact, and BSE’s market share gain story is expected to continue. Nevertheless, the concern about the implementation of the consultation paper on entity-level limits remains a risk," it added with a 'buy' rating on BSE.