Photo: Aniruddha Chowdhury/Mint
Photo: Aniruddha Chowdhury/Mint

BSE may launch IPO by fourth quarter of fiscal 2017

The entire IPO offering is sponsored by existing shareholders under offer-for-sale category and BSE is not raising any fresh equity capital

Kolkata: Leading stock exchange BSE Ltd may launch its initial public offering (IPO) by the fourth quarter of this fiscal as it does not anticipate any major hurdles to the issue, people familiar with the matter said.

“Since we have filed, we have not yet received any communication seeking any clarification so far from Sebi (Securities and Exchange Board of India). We do not anticipate any major hurdle and expect their approval over the next 60-70 days," a person involved in process told PTI.

BSE remained comfortable with Sebi’s current regulation on listing, which does not allow self-listing and says cross-listing will only improve transparency.

The people said once approval is received, market condition would be the driving factor for the actual IPO launch, without ruling out possibility of the share sale taking place in January-March.

They said sponsor shareholders will be the key decision makers on the matter as BSE is just a facilitator in the issue, which will be the country’s first IPO for a stock exchange.

The entire IPO offering is sponsored by existing shareholders under offer-for-sale (OFS) category and BSE is not raising any fresh equity capital.

The 141-year-old exchange has about 9,000 shareholders. It received Sebi’s in-principle approval in March this year. Furthermore, subject to applicable law, the total size of the IPO shall be up to 30% of the post-IPO issued equity share capital of the exchange.

According to reports, the issue size could be around Rs1,200-1,300 crore. Out of top 10 shareholders, many are diluting their stake.

Singapore Stock Exchange is one of the shareholders which is completely divesting its stake. Top shareholders include Deutsche Boerse AG, Singapore Exchange Ltd, Caldwell India Holdings Inc., Atticus Mauritius Ltd and Acacia Banyan Partners Ltd., LIC, SBI and Bajaj Holdings.

Deutsche Boerse is not selling any stake in this offer, while BSE officials expect they will raise their shareholding in near future.

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