The Hindu Business Line : Banks eye strategic investments in CSE

Kolkata June 22 A clutch of institutional investors, including banks and outfits promoted by the State Government, may come in as strategic investors in the Calcutta Stock Exchange, which is trying to turn into a demutualised entity in line with a specific scheme outlined earlier.

Banks such as Allahabad Bank and United Bank of India, both locally headquartered, have been sounded out in this regard and their prima facie interest in the demutualisation process obtained, sources say, adding that feelers have come from the West Bengal Industrial Development Corporation (WBIDC) as well.

CSE circles say the exchange has had to pitch a certain value proposition for probable investors such as these. This spanned its trading systems, its century-old traditions and its property on an important, arterial road in the city.

A possible involvement of the local government, perhaps by way of an investment by WBIDC, is being viewed as significant in this context as the exchange is sure such a move may well encourage other parties to participate.

The business plan originally envisaged for CSE included interaction with a range of potential investors - banks and other financial institutions, private equity funds, commodity bourses and corporate houses.

CSE has more recently proposed to change its capital structure, sub-dividing its shares, each of which has a face value of Rs 250. This will be reduced to Re 1. Its authorised capital will be Rs 10 lakh.