Asia’s oldest bourse Bombay Stock Exchange(BSE), which recently concluded its Rs. 1,243-crore initial public offering, will list on rival National Stock Exchange (NSE) on February 03,2017
The IPO, which opened for subscription from January 23—25, was subscribed 51 times at a price band ofRs. 805—806 per share.
The portion set aside for qualified institutional buyers (QIBs) was oversubscribed nearly 49 times and that of non-institutional investors a staggering 159 times. The retail investor category was also oversubscribed six times
During the initial share sale, shareholders offered 1.54 crore shares estimated to be worth around Rs.1,243.44 crore at the higher end of the price band.
BSE’s initial share sale was the first in 2017 after 26 companies together garnered Rs. 26,000 crore through IPOs in 2016, making it the best year for public offers since 2010.
Among the existing BSE shareholders are Bajaj Holdings Investment, Caldwell India Holdings, Acacia Banyan Partners, Singapore Exchange, Mauritius-based arm of American investor George Soros’ Quantum Fund and foreign fund Atticus.
There are an estimated 9,000 shareholders of BSE, where mostly brokers held shares earlier. However, a host of foreign investors and domestic financial institutions have acquired shares over the years and the IPO will provide some of them an exit window to monetise their investments.
BSE is the world’s largest exchange by number of listed companies. Shares of nearly 3,000 companies trade on the BSE, earlier known as the Bombay Stock Exchange.
BSE is the world’s 10th largest exchange by market capitalisation. The m-cap of BSE-listed companies stands at Rs. 1,13,87,346 crore.
Note
Seven of the top 10 shareholders of Bombay Stock Exchange Ltd. (BSE) are paring their holdings in the forthcoming Initial Public Offer. The exchange disclosed this in its draft red herring prospectus filed with the Securities and Exchange Board of India (Sebi)
According to the prospectus, nearly 69.3 percent of the shares under offer for sale are owned by seven of the top 10 shareholders.
The BSE IPO will see Singapore Stock Exchange sell its entire 4.7 percent stake, while competitor Deutsche Boerse will continue to hold its 4.7 percent stake in the India’s oldest exchange.
Among the other shareholders, Atticus Mauritius Ltd. and Quantum (M) Ltd., each holding 3.7 percent stake in BSE, will also exit completely. Other investors also selling stakes include GKFF Ventures, Acacia Banyan Partners Ltd., Caldwell India Holdings Inc and Bajaj Holdings and Investments Ltd.
Domestic financial institutions have chosen not to exit via the IPO. State Bank of India and Life Insurance of India, each with a 4.7 percent stake, will continue to remain invested and will be the largest shareholders along with Deutsche Boerse’ after the IPO.
In the IPO, BSE’s shareholders will sell 2.99 crore shares through an offer for sale, and the exchange will list on rival NSE (National Stock Exchange). BSE will be the second stock exchange to list in India. Multi Commodity Exchange Ltd was the first listed stock exchange, it had received deemed stock exchange status post the merger of commodity market regulator, The Forward Market Commission (FMC) with SEBI.
NSE toohas filed draft papers with SEBI last month for an estimated Rs. 10,000-crore IPO
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