BSE to launch country’s first IPO by a stock exchange on Jan 23, looks to raise Rs 1,350 crore


NEW DELHI: India’s second largest domestic stock exchange BSE on Friday said it would hit the market with its initial public offering (IPO) on January 23.

The IPO is expected to be sold in the price band of Rs 800-850 apiece, with existing investors offloading shares worth nearly Rs 1,350 crore through the offer.

BSE has 302 shareholders, including Singapore Exchange and a Citigroup unit, who will sell up to 15.4 million shares with a face value of Rs 2 each, the red herring prospectus filed with the market regulator Sebi said.

The issue will close on January 25.

The Singapore Stock Exchange (4.67 per cent), George Soros-promoted Quantum fund (3.68 lakh shares) and Atticus Mauritius (3.68 per cent) would be among the shareholders who would sell their entire holdings in the exchange.

Deutsche Borse, which holds 4.7 per cent stake in the stock exchange, is not among the selling shareholders. The Singapore Exchange and Deutsche Borse had acquired 5 per cent stake each in the exchange for a consideration of Rs 200.78 crore each in 2007.

Sebi had on January 3 given its nod to the IPO, nearly four months after BSE filed the papers with the market regulator on September 9. Sebi’s approval has come at a time when CDSL, a BSE arm (54.2 per cent held by the exchange), has filed papers with Sebi for an IPO.

NSE, BSE’s rival, filed papers with Sebi for its forthcoming Rs 10,000 crore IPO in December.

BSE shares will be listed on NSE.

Between FY2012 and FY16, average daily trading volume on BSE climbed to 407.5 million from 323.5 million. At the same time peer NSE saw its volume rise to 1,851.8 million from Rs 1,437.7 million.