The Hindu Business Line : HSE initiates demutualisation process

Hyderabad, July 13 In pursuance with Securities and Exchange Board of India’s regulations pertaining to public shareholding in recognised stock exchanges, the Hyderabad Stock Exchange Ltd is divesting the equity of existing shareholders of the company.

“As part of the HSE Corporatisation and Demutualisation Scheme 2005, the exchange is intending to offload minimum 14,89,200 equity shares (51 per cent of outstanding capital) to persons other than members and their associates.

“We had already called for expression of interest – the last date for which is July 17,” Mr Hari Kishen Attal, Director, HSE, told newspersons here on Friday.

The floor price per share was fixed at Rs 450 on the basis of company’s valuation at Rs 340 crore (including its two assets in Hyderabad, 10,000 equity shares of Bombay Stock Exchange Ltd and 70,000 equity shares of Inter Connected Stock Exchange), he said.

Each strategic partner, investor has to bid for a minimum of 27,000 shares.

The bidding would be done on July 21 and the last date for receipt of final payment is July 31.

Future plans

On the future plans of HSE, Mr K Pandu Ranga Reddy, Director said the exchange was in the process of teaming up with southern exchanges for merger of regional trading platforms. “We also want to pitch for the SME space in trading,” he added.

It is mandatory for the HSE to complete the demutualisation process before August 28. Demutualisation of exchanges has been taken up by SEBI to segregate the ownership of a stock exchange and to ensure holding of at least 51 per cent of equity shares by public other than shareholders having trading rights.