Bombay Stock Exchange(BSE)'s Rs. 1,243 Crore IPO Fully Subscribed Tuesday Jan 24,2017

BSE's initial public offer(IPO) -- the first by a domestic stock exchange in India -- to raise up to Rs. 1,243 crore was fully subscribed by the afternoon trade today, the second day of the offer.

The IPO, which closes tomorrow, received bids for 1,08,89,568 shares against the total issue size of 1,07,99,039 shares, data available with the NSE till 1330 hrs showed.

The stock exchange aims to raise up to Rs. 1,243 crore from the IPO, which is priced at Rs. 805-806 per share.

During the initial share sale -- which is also a first by any company this year -- shareholders will sell 15.43 million shares estimated to be around Rs. 1,243.44 crore at the higher end of the price band.

The IPO of 15,427,197 shares of face value of Rs. 2 each will constitute up to 28.26 per cent of the fully-diluted post offer issued share capital of BSE.

Bids for the issue can be made for a minimum of 18 shares and in multiples of 18 thereafter.

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.