BSE IPO opens on Monday

BSE will hit the capital market tomorrow with its much-awaited initial public offer, the first by a domestic stock exchange, to raise up to Rs 1,243 crore.

The IPO opens on January 23 and closes on January 25. The stock exchange aims to raise up to Rs 1,243 crore from the IPO, which is priced at Rs 805-806 per share.

During the initial share sale — which is also the a first by any company this year — shareholders will sell 15.43 million shares estimated to be around Rs 1,243.44 crore at the higher end of the price band.

The IPO of 15,427,197 shares of face value of Rs 2 each will constitute up to 28.26 per cent of the fully-diluted post offer issued share capital of BSE.

Bids for the issue can be made for a minimum of 18 shares and in multiples of 18 thereafter.

Meanwhile, BSE had on Friday raised Rs 373 crore by allotting shares to anchor investors.

BSE shares will be listed on NSE as SEBI rules do not allow self-listing for an exchange.

Capital markets regulator SEBI had given its final go-ahead to the draft prospectus for the IPO on December 30.

Meanwhile, rival NSE too has filed draft papers with the SEBI last month for an estimated Rs 10,000-crore IPO.

Among the existing BSE shareholders are Bajaj Holdings Investment, Caldwell India Holdings, Acacia Banyan Partners, Singapore Exchange, Mauritius-based arm of American investor George Soros’ Quantum Fund and foreign fund Atticus.

There are an estimated 9,000 shareholders in BSE, where originally mostly brokers held shares. However, a host of foreign investors and domestic financial institutions have acquired shares over the years and the IPO will provide some of them an exit window to monetise their investments.

The issue is being managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory and Securities (India) Pvt, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals.

BSE is the world’s largest exchange by number of listed companies. It is India’s largest and the world’s 10th largest exchange by market capitalisation.

The market capitalisation of BSE-listed companies stands at Rs 1,10,23,189 crore.

Multi Commodity Exchange of India is the only listed bourse in the country.