BSE IPO: Shares to be priced at Rs805-806 apiece

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Mumbai: BSE Ltd, Asia’s oldest stock exchange, on Monday said that it will sell shares in its initial public offering (IPO) in a price band of Rs805-806 per share.

Last week, Mint reported that BSE was looking at pricing its shares between Rs800 and Rs850 per share.

At the upper end of the price band, the BSE IPO will see investors in the exchange sell shares worth Rs1,243.4 crore (approximately $183 million).

The BSE issue size is estimated to be Rs1,200-1,300 crore, Mint reported in September. The exchange had filed its draft red herring prospectus (DRHP) the same month.

The IPO will open on 23 January, BSE said. The issue closes on 25 January. Shares will be allotted to anchor investors on 20 January. Anchor investors are institutional investors to whom shares are allotted on a discretionary basis a day prior to the public launch of the offer, as part of anchor book allocation.

On 3 January, market regulator Securities and Exchange Board of India, or Sebi, approved BSE’s IPO, thus giving it the go-ahead to launch the share sale.

BSE’s larger rival, National Stock Exchange of India Ltd (NSE), too has filed its DRHP with the regulator. Existing investors of NSE are looking to dilute 22.5% stake through the IPO, which could be as large as Rs10,000 crore.

BSE’s IPO will see existing shareholders selling 15.42 million shares through the offer for sale route, according to the information in the red herring prospectus filed by the exchange. The issue represents 28.26% of BSE’s pre-share sale capital.

The draft prospectus listed 302 shareholders looking to sell their shares. Singapore Exchange Ltd (SGX) will sell 5.09 million shares, or a 4.7% stake, making a complete exit. Other shareholders who have offered to sell their shares include Atticus Mauritius Ltd, Mauritius investment arm Quantum (M) Ltd, GKFF Ventures, Acacia Banyan Partners Ltd, Canada-based investor Thomas Caldwell’s Caldwell India Holdings Inc., and Bajaj Holdings and Investment Ltd.

BSE has hired eight merchant bankers, including Edelweiss Financial Services Ltd, Axis Capital Ltd, Jefferies India Pvt. Ltd, Nomura Financial Advisory and Securities (India) Pvt. Ltd and SBI Capital Markets Ltd.

Individual shareholders, mainly brokers and trading members, hold 56.83% in BSE. The rest is held by institutional holders such as the Life Insurance Corporation of India, State Bank of India and Bajaj Holdings, besides the foreign bourses.

In 2010, when billionaire financier George Soros bought a 3.9% stake in BSE for about Rs160 crore from Dubai Financial Group, the exchange was valued at around Rs4,000 crore.

Currently, Multi Commodity Exchange of India Ltd is the only listed bourse in the country.

Last year saw 26 companies raise Rs26,493.8 crore through the IPO route, according to data from primary market tracker Prime Database, while in 2015, 21 companies raised Rs13,614.08 crore.