BSE To List On The NSE On 3rd February, 2017

Asia’s oldest bourse – the Bombay Stock Exchange (BSE), which lately concluded its Rs 1,243-cr initial public offering (IPO), will list on rival National Stock Exchange (NSE) on 3rd February, 2017. The IPO, which opened for subscription from 23rd- 25th January, was subscribed 51 times at a price band of Rs 805—806 per share.

The IPO was managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory and Securities, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals. Nishith Desai Associates was the legal advisor to this IPO while Karvy Computershare was their registrar.

The portion set aside for QIBs – qualified institutional buyers was oversubscribed close to 49 times and that of non-institutional investors a staggering 159 times. Sources stated that the retail investor category was also oversubscribed 6 times.
During the initial share sale, shareholders offered 1.54 cr shares estimated to be worth around Rs 1,243.44 cr at the higher end of the price band. This public offer of BSE is to offer a sale through the offer for sale (OFS) route. This works out to close to 30 per cent of total holding. The BSE’s initial share sale was the first in 2017 after twenty six (26) companies together garnered Rs 26,000 cr through IPOs in 2016, making it the best year for public offers since the year 2010.

NSE too filed draft papers with the Securities and Exchange Board of India (SEBI) last month for an estimated Rs 10,000-cr IPO.

Among the existing BSE shareholders are Bajaj Holdings Investment, Caldwell India Holdings, Acacia Banyan Partners, Singapore Exchange, Mauritius-based arm of American investor George Soros’ Quantum Fund and foreign fund Atticus. There are an estimated 9,000 shareholders of the BSE, where mostly brokers held shares earlier. However, a host of foreign investors and domestic financial institutions have acquired shares over the years and the IPO shall provide some of them an exit window to monetize their investments.

BSE is the world’s biggest exchange by number of listed companies. Shares of nearly 3,000 companies trade on the BSE, also known as the Bombay Stock Exchange. It is the world’s 10th largest exchange by market capitalization. The m-cap of BSE-listed companies stands at Rs 1,13,87,346 cr.

BSE is the Fastest Stock Exchange in the world with the speed of 6 micro seconds. It ranks amongst India’s leading exchange groups. Over the past 14 decades or 140 years to be precise, the exchange has facilitated growth of the Indian corporate sector by providing it with an efficient capital-raising platform. In the year 1875, the bourse was started as – “The Native Share & Stock Brokers’ Association”.