BSE plans to file IPO papers with Sebi in July
Asia's oldest bourse BSE may file papers for an initial public offering with the Securities and Exchange Board of India in July to raise up to Rs800 crore
New Delhi: BSE Ltd, Asia’s oldest stock exchange, plans to file draft papers with the capital markets regulator Securities and Exchange Board of India (Sebi) to raise ₹ 800 crore via its much-awaited initial public offering (IPO).
The exchange’s initial share sale programme is expected to hit the market this fiscal.
People familiar with the matter said BSE plans to file IPO papers with Sebi in July to mop up around ₹ 800 crore.
BSE, formerly known as Bombay Stock Exchange, has already appointed Edelweiss Financial Services as the lead merchant banker and AZB & Partners and Nishith Desai Associates as legal advisers to the issue.
A committee of the BSE senior management, its board members and shareholders have been overseeing the progress in this regard.
Last week, BSE’s board, which was addressed by Sebi chairman U.K. Sinha, discussed the IPO. For the entire fiscal 2016, the exchange’s net profit slumped 38% to ₹ 96.74 crore.
However, income for the period rose to ₹ 616.19 crore from ₹ 583.71 crore. The exchange said in March that it plans to come out with its initial share sale programme in the next six-nine months.
The announcement came after receiving in-principle approval from Sebi for listing. The Sebi notified amendments to the Stock Exchanges and Clearing Corporations regulations on 1 January.
The new rules are aimed at making it easier for stock exchanges to list their shares through an IPO. Soon after the amendments, BSE sought approval for launching the IPO, saying it is in compliance with all the requirements for listing.
It has been seeking a nod to get listed for a long time, but clearances were not forthcoming on one issue or the other. While BSE is open to the idea of cross-listing—listing shares on a rival exchange platform—its competitor the National Stock Exchange of India Ltd has been pitching hard for either self-listing or direct supervision by Sebi, and not by a rival exchange in case of cross-listing.
Currently, the Multi Commodity Exchange of India Ltd is the only listed bourse in the country.
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