BSE to file Rs 1,500 cr IPO on 23rd Jan on NSE

BSE, the oldest bourse of Asia will soon launch its much awaited Rs 1,500 crores initial public offering (IPO) on 23^rd January 2017. The shares are expected to list on rival National Stock Exchange (NSE) on or around 3^rd February 2017. The IPO, which would open on 23^rd January, closes on 25^th January 2017, according to Red Herring Prospectus (RHP) filed by BSE with markets regulator SEBI (Securities and Exchange Board of India).

This public offer of BSE is to offer a sale of 1.54 crores shares by the existing shareholders through the offer for sale (OFS) route. This works out to close to 30 per cent of total holding. Among the existing shareholders are Bajaj Holdings Investment, Caldwell India Holdings, Acacia Banyan Partners, Singapore Exchange, Mauritius-based arms of the American investor George Soros’ Quantum Fund and foreign fund Atticus.

Sources familiar with this new development said, the shares could be offered at a price of as high as Rs 500 each, giving the IPO a size of up to Rs 1,500 crores. Even at the lower end of the band, the IPO should be worth about Rs 1,200 to 1,300 crores, they added.

There are an estimated 9,000 shareholders in BSE, whereas originally mostly brokers held the shares. However, a host of foreign investors as well as domestic financial institutions have acquired shares over the years and this IPO is expected to provide some of them an exit opportunity to monetize their assets.

BSE – earlier known as the Bombay Stock Exchange – got in-principle approval from SEBI last year for the IPO. Shares of approximately 3,000 companies trade on its platform. Capital market regulator SEBI, last month, gave its final go-ahead to BSE to launch its public issue. Its rival NSE had filed draft papers with SEBI last month for an estimated Rs 10,000 crores IPO.  

BSE is Asia’s first and the Fastest Stock Exchange in world with the speed of 6 micro seconds. It is one of India’s leading exchange groups. Over the past 140 years, the exchange has facilitated the growth of the Indian corporate sector by providing it an efficient capital-raising platform. Popularly known as BSE, the bourse was commenced as “The Native Share & Stock Brokers’ Association” in the year 1875.

The issue is being managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory and Securities (India) Pvt, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals. Nishith Desai Associates is the legal advisor to this BSE IPO while Karvy Computershare is their registrar. Multi Commodity Exchange of India is the only listed bourse in the country.