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BSE to name second strategic partner today

BSE to name second strategic partner today
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First Published: Wed, Mar 07 2007. 01 18 PM IST
Updated: Wed, Mar 07 2007. 01 18 PM IST
Mumbai: Bombay Stock Exchange Ltd, Asia’s oldest, said it will announce its second partner today, having sold a Rs1.89 billion stake to Deutsche Boerse AG last month.
Rajnikant Patel, the chief executive officer of the Bombay Stock Exchange, will address the media about the partnership at 2:15 pm local time in Mumbai, according to a faxed invitation. The exchange sold 5% of its equity to Deutsche Boerse.
The Bombay Stock Exchange, which operates the nation’s benchmark 30-share Sensitive Index, is seeking partners as it raises funds to upgrade its systems and catch up with younger rival National Stock Exchange of India Ltd. The National Stock Exchange, founded in 1992, has double the daily trading value of its 132-year-old counterpart.
Singapore Exchange Ltd last month said it is continuing talks with the Bombay Stock Exchange for an equity stake. The Mumbai-based exchange has a 19 May deadline, set by the market regulator Securities & Exchange Board of India, to sell as much 49% of its equity to investors.
Deutsche Borese’s investment valued the Bombay Stock Exchange at $854 million. While the German exchange will pay Rs5,200 a share for 363,157 shares of the Bombay Stock Exchange, it won’t be represented on the 12-member board.
Global Partners
The Bombay Stock Exchange’s move to attract global partners comes after the National Stock Exchange in January agreed to sell a 20% stake to investors led by NYSE Group Inc. and Goldman Sachs Group Inc. The Indian government lifted a ban on overseas ownership in local bourses in December.
The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, advanced 47% in 2006, topping a 42% gain the previous year, as the nation’s $854 billion economy expanded at the second-fastest rate among major economies. The index rallied for a fifth year in 2006.
India, Asia’s fourth-biggest economy, is expected to expand at a record pace of 9.2% in the fiscal year ending 31 March, according to government estimates. India may overtake China in growth this year, Credit Suisse Group economists estimated in December.
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First Published: Wed, Mar 07 2007. 01 18 PM IST
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