Asia oldest stock exchange BSE has fixed the minimum bid lot for its initial public offering at 18 shares with bids in multiples of 18.

The price band of the bourse’s IPO is set at ₹805-806 and has been discovered after detailed deliberations with institutional investors, according to the merchant bankers to the issue.

The BSE IPO will open for subscription on January 23, and close on January 25. However, the bidding date for anchor investors is January 20, one working day prior to the issue.

The issue is an offer-for-sale of over 1.54 crore shares of face value ₹2 each. About 28.26 per cent stake in the bourse will change hands and there would be no capital infusion into the stock exchange as existing investors are selling out.

The issue size is expected to be between ₹1,200-1,300 crore and as many as 302 entities are offering their shares for sale. Singapore Exchange, Atticus Mauritius, Quantum (m) and Citigroup Global Markets are completely divesting their stakes, while others such as GKFF Ventures, Acacia Banyan Partners, Caldwell India Holdings and Bajaj Holdings are partly divesting their stakes.

May rope in anchors

Of the total number of shares being offered for sale, the institutional investor (qualified institutional buyer or QIB) portion consists of over 77.13 lakh equity shares, the high net worth (HNI) (non-institutional investor) portion is a minimum of 23.14 lakh shares and the retail portion a minimum of 53.99 lakh shares.

The bourse would be listed on the NSE. According to SEBI’s Stock Exchange and Clearing Corporation regulations, exchanges cannot list on themselves and, in addition, shareholders of the exchange are required to be ‘fit and proper’.

Edelweiss, Axis Capital, Jefferies and Nomura are the global book-runners to the issue while Motilal Oswal, SBI Capital Markets, and SMC Capital are the domestic book-runners. Spark Capital is the co-book runner to the issue. The registrar to the issue is Karvy Computershare.

Largest by m-cap, listed cos

The BSE was founded on July 9, 1875, and is the world’s 11th largest stock exchange by market capitalisation ($1.52 trillion) of listed companies, besides being the largest in terms of the number of listed companies.

It derives its revenue from securities services, services to corporates, data dissemination fees, investments and deposits.

Its income in financial year 2015-16 was ₹426.54 crore, while its net profit stood at ₹122.53 crore.