The bourse plans to file its draft red herring prospectus (DRHP) in June. The stock market regulator, Securities and Exchange Board of India (Sebi), may take two-three months for giving its final nod.
After a long wait, initial public offer (IPO) of an Indian stock exchange is set to hit the markets soon.
BSE Ltd, Asia's oldest exchange whose history dates back to 1855, has set a deadline for its IPO -- it is expected to come out between September and December this year.
The bourse plans to file its draft red herring prospectus (DRHP) in June. The stock market regulator, Securities and Exchange Board of India (Sebi), may take two-three months for giving its final nod.
In a letter dated January 22, BSE told Sebi that it was fully compliant with Sebi regulations and ready for an IPO. On March 12, in its Board meeting, the capital markets regulator gave an in-principle approval to BSE for IPO that will give investors an opportunity to exit.
Although Sebi allowed exchanges that are more than three-year-old to sell shares in June 2012, many clauses such as the 'fit and proper' criterion for investors and norms related to limits on individual shareholding made it difficult for bourses to list.
When contacted, BSE declined to comment for this report.
The market is valuing BSE at more than Rs 4,000 crore. And exchange is expected to peg its IPO at around Rs 800-850 crore. Edelweiss is the lead banker for IPO while BSE has also hired other 13 banks to manage the issue. They include Bank of America Merrill Lynch, JPMorgan Chase and Co, Barclays Plc, UBS AG, Kotak Mahindra Capital Co, ICICI Securities, and Axis Capital Ltd and IIFL Holdings Ltd.
Before IPO, BSE is coming up with new products. The bourse has signed up with the Reserve Bank of India (RBI) for selling gold in gold monetisation scheme. The stock exchange has formed a team for commodity segment and awaiting Sebi approval. It is also focusing more on non-traditional market segments such as SMEs, where it has 90% share, and Mutual Fund Systematic Investment Plan where it accounts for 80% market share.
However, the bourse has only 30% share in the cash market.
Foreign shareholders, who hold stake in the exchange, include Deutsche Boerse and Singapore Exchange with 4.74% stake, and Caldwell India Holdings, Atticus Mauritius and Banyan Partners with 3.74% stake in the exchange. Domestic investors include State Bank of India and Life Insurance Corporation of India.
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