The Hindu Business Line : DSE demutualisation done at enterprise value of Rs 212 crore

The Delhi Stock Exchange, one of the oldest stock exchanges in the country, has been demutualised at an enterprise value of about Rs 212 crore, a top official of the exchange has said.

The enterprise value of Rs 212 crore was much lower than the earlier talked about enterprise value of about Rs 400 crore at the expression of interest (EOI) stage.

“We have reduced the price to ensure that strategic partners are roped in and the sale (demutualisation) goes through. The pricing had to be attractive for new comers. We also did not want a situation where only financial investors are inducted,” Mr Bharat Bhushan Sahny, Chairman of the DSE Demutualisation Committee, told Business Line.

Non-trading shareholders

He said that about 14-15 investors, both domestic and foreign, have together taken 51 per cent stake in DSE at a price of Rs 70 per share. Of the 51 per cent, 15 per cent came through FDI and the balance 36 per cent were done through domestic investors.

The demutualisation exercise was aimed at induction of non-trading shareholders to the extent of 51 per cent of the aggregate equity capital of the exchange post-demutualisation. DSE completed the demutualisation exercise within the August 28 deadline set by the Securities and Exchange Board of India.

Meanwhile, the Foreign Investment Promotion Board on August 31 cleared for approval by the Finance Minister the proposals of foreign investors — New Vernon Private Equity Ltd, Mauritius, and Passport Global Master Fund SPC Ltd, British Virgin Islands, — for picking up to 5 per cent stake each in DSE with an inflow of up to Rs 10.6 crore each. These two proposals are in addition to the 51 per cent that DSE has already allotted to various investors under the demutualisation exercise.