Securities markets regulator SEBI has given the go-ahead for the initial public offering of the BSE, Asia’s oldest exchange. The draft offer document was cleared on December 30, which would culminate in its listing on rival NSE.
The IPO size is estimated at about ₹1,300 crore with a stake-sale of up to 30 per cent or over 2.9 crore shares of face value ₹1 each, through the offer-for sale (OFS) route.
Singapore Exchange Ltd, Acacia Mauritius Ltd and Quantum (M) will exit the bourse in the OFS.
Interestingly, BSE subsidiary and depository services provider CDSL also filed its draft papers for an IPO via the OFS route 10 days ago.
The IPO would be for up to over 3.51 crore shares (about 33.65 per cent) by existing shareholders, such as BSE, SBI and Bank of Baroda . “BSE holds 50.05 per cent in CDSL and has to compulsorily dilute its stake to 24 per cent by FY17 as per the timeline extension given to the bourse by the regulator,” confirmed an official of the bourse.
“It is also likely that regulatory approval for CDSL could be faster than the usual time line,” he added.
Bimal Jalan panel reportMore than four years ago, SEBI had directed stock exchanges to bring down their stakes in depositories to 24 per cent accepting the recommendations of the Bimal Jalan Committee report on market infrastructure institutions (exchanges, depositories, clearing corporations). At that time, the BSE held 54.2 per cent in CDSL.
The BSE was founded on July 9, 1875, and is the world’s 11th largest exchange by market capitalisation ($1.52 trillion) of listed companies, besides being the largest in terms of the number of listed companies.
It derives its revenue from securities services, services to corporates, data dissemination fees, investments and deposits. Its income in FY16 was ₹426.54 crore and net profit was ₹122.53 crore.
Edelweiss, Axis Capital, Jefferies, Nomura, Motilal Oswal, SBI Caps, SMC and Spark Capital are the book-running lead managers for the issue. Karvy Computershare is the registrar.