BSE sets IPO price band at Rs 805-806 per share

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MUMBAI: Asia’s oldest bourse BSE which is set to hit the market with its initial public offering later this month, has set a price band of Rs 805-806 for the issue.
At the upper end of the price band, the exchange will be able to raise Rs 1,241 crore from the issue.

The IPO will open on January 23 and close on January 25. It comprises an offer for sale of 1.54 crore shares by existing shareholders including Singapore Exchange, Atticus Mauritius, Acacia Banyan Partners and Caldwell India Holdings Inc.

“The floor price is 402.5 times the face value and the cap price is 403 times the face value,” the exchange said in a newspaper notice.

The shares will have a face value of Rs 2 each. The minimum bid quantity would be 18 shares and in multiples of 18 shares thereafter, the exchange said.

“The Price/Earnings ratio based on diluted EPS of Rs 22.45 on a restated consolidated basis and of Rs 24.16 on a restated unconsolidated basis in fiscal 2016 for the exchange at the upper end of the price band is as high as 35.90 times on restated consolidated basis and 33.36 times on restated unconsolidated basis, respectively as compared to the Nifty50 PE ratio of 22.50,” the exchange said in the newspaper notice.

Edelweiss Financial Services, Axis Capital, Jefferies, and Nomura Financial Advisory and Securities (India) are global co-ordinators and book running lead managers to the issue. Motilal Oswal Investment Advisors, SBI Capital Markets, Spark Capital, and SMC Capitals are the co-book running lead managers to the IPO.