BSE Limited on Friday, filed for an Initial Public Offering, with a view to have its shares listed on the wider National Stock Exchange, Reuters reported. The issue size of BSE’s IPO, that is likely to be launched in December, will be between Rs 1,200 crore to Rs 1,500 crore, a source close to the development told ET. BSE Limited could raise up to Rs 1,300 crore from the sale of shares.
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An official at the BSE confirmed to AFP on condition of anonymity that the application had been filed and that the exchange was awaiting a response from SEBI, which granted the initial go-ahead earlier this year.
Under the IPO, shareholders of the BSE will be selling up to 29.96 million shares, or 27.9 per cent stake (up to 30 per cent of the post-issue equity share capital) of the exchange via the offer for sale (OFS) route at a price ranging from Rs1,200 to Rs1,300 crore, according to the draft prospectus.
For the fiscal year ended 31 March 2016, BSE reported consolidated revenue of Rs658.27 crore compared with Rs624.75 crore it earned in the previous year.
Of the 107.35 million shares in BSE, trading members hold about 52.3 million shares, or 48.7 percent with the rest held by Deutsche Boerse AG, Singapore Exchange and a group of foreign portfolio investors, insurance firms and individuals. Its topline in FY16 was ₹426.54 crore and net profit was ₹122.53 crore. However, lack of clarity on rules for the listing of stock exchanges had delayed the process.
BSE will be the first listed stock exchange in the country.
In a letter dated 22 January, BSE told Sebi that it was fully compliant with Sebi regulations and ready for an IPO.
BSE would be the second exchange to be listed in India after commodity bourse MCX.
BSE got in-principle approval from Sebi earlier this year for the IPO.
The exchange has hired eight merchant bankers.
The exchange last month set up an escrow account for shareholders to tender shares for the proposed IPO.
Axis, Edelweiss, Jefferies and Nomura are the joint global coordinators, while Motilal Oswal, SBI Capital Markets, SMC Capitals and Spark Capital are among the other bookrunners for the IPO.
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The exchange’s shareholders approved the IPO proposal on June 24. It recently appointed Citigroup Global Markets, Morgan Stanley India, Kotak Mahindra Capital and JM Financial Institutional Securities global co-ordinators to manage its IPO.
