Kolkata: The Calcutta Stock Exchange, the country’s third-largest stock exchange, is offering a majority stake to the public, in line with a plan by the regulators to offer shares to those other than stockbrokers who part own it.
In an advertisement in the local papers, CSE said it has over 900 trading members and 3,000 listed companies. With no external borrowings, it has a fully automated trading system comparable with other leading exchanges. The exchange also owns its premises in the central business district area of Kolkata.
Exchange officials said that they are expecting foreign banks, private banksand other Indian financial institutions to evince an interest in holding a stake.
But, not everybody is convinced. For a start , it’s competing with the larger and more active Bombay Stock Exchange, which is also selling a stake in itself.
“When the future of regional stock exchanges is bleak, I wonder how many investors would be interested in investing in the CSE,” Ajit Day, chairman and managing director Dayco Securities, one of the oldest stockbroking firms in Kolkata states.
As per its audited financial statements of 31 March 2006, CSE’s net worth was Rs55.9 crore and the net book value of its fixed assets was Rs11.1 crore.
PricewaterhouseCoopers, the global tax and management consulting company, is advising and managing the process of implementation of the divestment for CSE.