Asia’s oldest bourse BSE may price shares at up to $12.5 in IPO

Photo: Aniruddha Chowdhury/Mint

BSE Ltd, Asia’s oldest stock exchange, is likely to sell shares in a range of Rs800-850 per share in its initial public offering (IPO), which is expected to hit the markets in the next 30-60 days, said two people aware of the development.

“They have been engaged in several roadshows for a while now and based upon the feedback from these roadshows, the pricing is expected to be in the range of Rs800-850 per share,” said one of the two people, requesting anonymity as the talks are private.

The pricing could go up to Rs900 a share, he added.

BSE’s IPO is expected to hit the market in the next one or two months, said the second person cited above, also requesting anonymity. “While a lot of overseas roadshows have already happened, some roadshows are still happening. The launch timeline is still under discussion, but the exchange is eager to go ahead with the launch in the coming month or two,” he said.

BSE managing director and chief executive Ashishkumar Chauhan declined to comment on the development.

The BSE issue size is estimated to be Rs1,200-1,300 crore, Mint reported in September. The exchange had filed its draft red herring prospectus (DRHP) the same month.

Last week, market regulator Securities and Exchange Board of India approved BSE’s IPO, thus giving it the go-ahead to launch the share sale.

BSE’s larger rival, National Stock Exchange of India Ltd (NSE), too has filed its DRHP with the regulator. Existing investors of NSE are looking to dilute 22.5% stake through the IPO, which could be as large as Rs10,000 crore.

BSE’s IPO will see existing shareholders selling 29.96 million shares through the offer for sale route, according to the information in the draft prospectus. The issue represents 27.43% of BSE’s pre-share sale capital.

The draft prospectus listed 262 shareholders looking to sell their shares. Singapore Exchange Ltd (SGX) will sell 5.09 million shares, or a 4.7% stake, making a complete exit. Other shareholders who have offered to sell their shares include Atticus Mauritius Ltd, Mauritius investment arm Quantum (M) Ltd, GKFF Ventures, Acacia Banyan Partners Ltd, Canada-based investor Thomas Caldwell’s Caldwell India Holdings Inc., and Bajaj Holdings and Investment Ltd.

BSE has hired eight merchant bankers, including Edelweiss Financial Services Ltd, Axis Capital Ltd, Jefferies India Pvt. Ltd, Nomura Financial Advisory and Securities (India) Pvt. Ltd and SBI Capital Markets Ltd.

Individual shareholders, mainly brokers and trading members, hold 56.83% in BSE. The rest is held by institutional holders such as the Life Insurance Corporation of India, State Bank of India and Bajaj Holdings, besides the foreign bourses.

In 2010, when billionaire financier George Soros bought a 3.9% stake in BSE for about Rs160 crore from Dubai Financial Group, the exchange was valued at around Rs4,000 crore.

Currently, Multi Commodity Exchange of India Ltd is the only listed bourse in the country.

Last year saw 26 companies raise Rs26,493.8 crore through the IPO route, according to data from primary market tracker Prime Database, while in 2015, 21 companies raised Rs13,614.08 crore.

Also Read:

Asia’s oldest bourse BSE gets Sebi nod for IPO

India: After 141 years, BSE still needs a niche for IPO success

This article was first published on Livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.