Moving closer to become a publicly listed exchange, Asia’s oldest bourse BSE (Bombay Stock Exchange) today filed draft papers with markets regulator Sebi to raise an estimated Rs 1,200 crore to Rs 1,300 crore through initial public offering (IPO).
The much-awaited public offer of BSE is expected to be entirely an offer for sale (OFS) by the existing shareholders. Shares worth over Rs 1,200 crore to Rs 1,300 crore could be sold in the public offer, sources said.
BSE said it would list its shares on larger rival the National Stock Exchange (NSE).
The exchange said in its draft prospectus that its investors are selling 29.96 million shares in the IPO, a roughly 27.9 per cent stake.
Of the 107.35 million shares in BSE, trading members hold about 52.3 million shares, or 48.7 per cent. The rest is held by Deutsche Boerse AG, Singapore Exchange and a group of foreign portfolio investors, insurance companies and individuals.
Presently, Multi Commodity Exchange of India is the only listed bourse in the country. BSE’s closest competitor NSE also plans to file for listing next year.
Founded in 1875, BSE, whose first venue for broker meetings was under a banyan tree in the financial capital Mumbai, has long been considering an IPO. However, lack of clarity on rules for the listing of stock exchanges had delayed the process.
Strong stock markets in India have sparked a boom in IPOs.
BSE, formerly known as Bombay Stock Exchange, reported total income of Rs 165 crore and net profit of Rs 52.7 crore in the quarter ended June 30.
Axis, Edelweiss, Jefferies and Nomura are the joint global coordinators, while Motilal Oswal, SBI Capital Markets, SMC Capitals and Spark Capital are among the other bookrunners for the IPO.