BSE files for IPO

BSE, the oldest stock exchange in Asia, filed a prospectus with the market regulator Sebi to get listed. Existing investors, including Singapore Exchange and a fund managed by billionaire investor George Soros, are selling nearly three crore shares of the exchange at an expected price of Rs.400-500 apiece, raising up to Rs.1,500 crore. This would give the exchange a market value of about Rs.5,000 crore.
BSE will be the first Indian stock exchange and the second bourse in the country to be listed. In 2012, Multi Commodities Exchange (MCX) became the first bourse in the country to get listed. NSE, the largest stock exchange in India by turnover, is also gearing up for listing.
Sources said of the nearly 9,300 investors who hold shares of BSE -some of them are brokers on the exchange -only 262 are selling their stake in the IPO. After operating as an association of persons for more than a century , BSE was converted into a public limited company in 2005. The members then became shareholders. Investment by several global bourses and private equity investors followed. Post the IPO, the existing shareholders will hold about 70% in BSE.
For the first quarter ended June 2016, BSE had a consolidated net profit of Rs.53 crore, a jump of 40% on an yearly basis. Across the world, most of the large exchanges are listed, including NYSE (Intercontinental Group), Euronext, Hong Kong Stock Exchange, Singapore Stock Exchange and several others.
BSE's shares will be listed on the NSE since Sebi rules do not allow self-listing for an exchange. Likewise, once NSE goes for its planned IPO, it will be listed on the BSE. For long, NSE has been moving the regulator to exempt it from the cross-listing rule and allow self-listing.Sebi, however, has not allowed any exemption yet.
BSE's IPO is being managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory , Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals.

No comments: