BackBSE shareholders vote for listing, dilution of stake via offer for sale
The BSE IPO could be entirely an OFS if shareholders agree to offload at least 10% stake of the exchange's total equity
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Mumbai: The shareholders of BSE Ltd on Friday voted for the proposed initial public offering (IPO) of the exchange and are expected to offload at least 10% stake of BSE’s total equity through an offer for sale (OFS).
The exchange held its annual general meeting (AGM) on Friday to seek shareholders’ approval for the listing.
“The shareholders have voted on the proposed IPO/OFS by the exchange and the results would be out in next three days," a person with direct knowledge of the matter told PTI.
The IPO could be entirely an offer for sale (OFS) if the BSE shareholders agree to offload at least 10% stake of the exchange’s total equity, people familiar with the matter said.
A maximum of 30% of BSE’s equity can be offloaded.
The exchange has about 8,000 shareholders comprising brokers and institutions. BSE has already appointed Edelweiss Financial Services as the lead merchant banker and AZB & Partners and Nishith Desai Associates as legal advisers to the issue.
BSE has also proposed to create an advisory committee that would consist of selling shareholders for transparency in the listing process. 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 the capital markets regulator Securities and Exchange Board of India (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, the exchange had sought approval for launching the IPO, saying it is in compliance with all the requirements for listing.
It has been seeking nod to get listed for a long time, but necessary clearances were not forthcoming on one issue or the other.
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