Mumbai: Asia’s oldest stock exchange BSE Ltd has received market regulator Securities and Exchange Board of India (Sebi)’s go-ahead for its initial public offering (IPO), according to the regulator’s website.
The exchange had filed its so called draft red herring prospectus (DRHP) in September.
Last week, BSE’s larger rival National Stock Exchange of India Ltd (NSE) too filed it’s 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.
The BSE issue size is estimated to be Rs1,200-1,300 crore, Mint reported in September.
Existing shareholders of Asia’s oldest bourse intend to sell 29.96 million shares through the offer for sale route, according to the information in its draft red herring prospectus. The issue represents 27.43% of BSE’s pre-share sale capital.
The draft document listed 262 shareholders who have agreed to sell their shares. Singapore Exchange Ltd (SGX) will sell 5.09 million shares, or a 4.7% stake, making a complete exit from BSE.
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. They include 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, the Multi Commodity Exchange of India Ltd is the only listed bourse in the country.
2016 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.