New Delhi: BSE, Asia's oldest stock exchange, plans to file draft papers with capital markets regulator SEBI to raise Rs 800 crore through its much-awaited initial public offer (IPO). The exchange's initial share-sale programme is expected to hit the market this financial year. According to sources, the exchange plans to file IPO papers with SEBI in July to mop-up around Rs 800 crore.
BSE (formerly known as Bombay Stock Exchange) has already appointed Edelweiss Financial Services as the lead merchant banker and AZB & Partners and Nishith Desai Associates as legal advisors to the issue. A committee of BSE senior management, its board members and shareholders have been overseeing the progress in this regard. Last week, BSE's board, which was addressed by SEBI Chairman U K Sinha, discussed the IPO.
For the entire fiscal 2015-16, the exchange's net profit slumped 38 per cent to Rs 96.74 crore. However, income for the period rose to Rs 616.19 crore from Rs 583.71 crore. The exchange said in March that it plans to come out with its initial share-sale program in the next six-nine months. The announcement came after receiving in-principle approval from SEBI for listing.
The Securities and Exchange Board of India (SEBI) notified amendments to the Stock Exchanges and Clearing Corporations regulations on January 1. 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. While BSE is open to the idea cross-listing - listing shares on a rival exchange platform -- its competitor National Stock Exchange (NSE) has been pitching hard for either self-listing or direct supervision by SEBI, and not by a rival exchange in case of cross-listing. Presently, Multi Commodity Exchange of India is the only listed bourse in the country.
