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BSE eyes $645 mn valuation in IPO

By Ankit Doshi

  • 16 Jan 2017
BSE eyes $645 mn valuation in IPO
Reuters | Credit: Reuters

BSE Ltd, formerly Bombay Stock Exchange, is seeking a valuation of as much as Rs 4,400 crore ($645 million) through an initial public offering that opens next week.

The stock-exchange operator has fixed the price band for its IPO at Rs 805-806 a share, it said in a statement. This would fetch about Rs 1,243 crore at the upper band.

The IPO will open on 23 January and close on 25 January. BSE, Asia's oldest exchange, will be the second Indian exchange to go public; Multi Commodity Exchange of India Ltd listed its shares five years ago.

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BSE said it will list its shares on larger rival National Stock Exchange around 3 February.

National Stock Exchange is also working to go public and will list its shares on the BSE.

BSE has slightly increased the size of its initial public offering.

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The issue comprises an offer for sale of 15.43 million shares of Rs 2 face value each, according to the BSE’s red herring prospectus filed to the Securities and Exchange Board of India. This constitutes 28.26% of its post-issue capital base.

BSE had earlier planned to sell 29.95 million shares of Re 1 face value each, according to its draft prospectus filed on 9 September.

About 300 shareholders will sell shares of BSE in the offering. The draft prospectus had listed 262 selling shareholders.

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The selling shareholders include Singapore Exchange Ltd, US billionaire George Soros’s hedge fund Quantum and a unit of Citigroup Inc. Singapore Exchange will sell its entire 4.67% stake while Quantum will offload its 3.68% holding, according to information made available in the prospectus.

The notable names missing from the list of selling shareholders include Deutsche Boerse AG as well as state-run Life Insurance Corporation and State Bank of India.

BSE has appointed Edelweiss Financial Services Ltd, Axis Capital Ltd, Jefferies India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd as lead bankers. Motilal Oswal Investment Advisors Pvt Ltd, SBI Capital Markets Ltd, SMC Capitals Ltd and Spark Capital Advisory (India) Pvt Ltd are the other bankers.

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