The Hindu Business Line : 20 bidders show interest in acquiring BSE stake

Overwhelming response
One of the largest private placement deals - about $478 million in the country
Pedigree overseas exchanges as well as domestic & foreign institutions to become investors

Mumbai April 12 The Bombay Stock Exchange today said it has received expression of interest from 20 parties for picking up 41 per cent stake in the exchange at a price of Rs 5,200 per share.

The interested investors include domestic financial institutions, domestic corporate houses, high net worth individuals and foreign funds.

SBI, the largest financial institution, is said to be one of the bidders.

Earlier this year, BSE, which is the oldest exchange in the country, sold 10 per cent of its stake to the German exchange operator Deutsche Börse (5 per cent) and Singapore Exchange Ltd (5 per cent) for Rs 189 crore each at a price of Rs 5,200 per share.

"The response to the BSE investment opportunity has been truly overwhelming and we are delighted to have, as our investors, pedigree overseas exchanges as well as domestic & foreign institutions. The new ownership pattern of the exchange will significantly strengthen its institutional character," said Mr Rajnikant Patel, Managing Director & CEO, BSE.

With this, BSE would be divesting 51 per cent stake in the exchange as per the SEBI guidelines on demutualisation. This would be one of the largest private placement deals — about $478 million — in the country.

Kotak Investment Banking will be the financial advisor to BSE on the transaction. Mr Uday Kotak, Executive Vice-Chairman and Managing Director, Kotak Mahindra, said, "We consider this as a landmark transaction for Bombay Stock Exchange Ltd and the quality of response from various investor segments demonstrates the level of keen interest in the exchange's space.'' The sale of shares would be subject to relevant regulatory approvals.

BSE may also go in for a public issue after the private placement is completed.