 "BSE to file for IPO this week: All you need to know")
The oldest bourse in Asia, Bombay Stock Exchange (BSE) is all set to file the draft prospectus for its initial public offering. Yes, like many other stock exchanges across the globe, BSE is looking to list itself on the exchange, as reported earlier. This might not come as a surprise a to veteran stock analysts but to the investors it surely is.
Business Standard brings you a report on what you, the investor, should know about this huge IPO.
The Bombay Stock Exchange is listing itself as an entity on the exchange. Once it has filed the draft, BSE will begin roadshows to popularise the issue to the institutional investors.
BSE will issue it's shares via offer-for-sale, and the issue size is expected to be Rs 1,200 crore. One share might cost Rs 400. During the offer for sale, BSE had a good response, with shareholders tendering 30 per cent of the exchange's total equity share capital.
Seven merchant bankers have been appointed by BSE to take care of its IPO — Edelweiss Financial Services, Axis Capital, Jefferies, Nomura, Deutsche Bank, Motilal Oswal and SBI Capital Market.
The Indian markets have been doing well this week and hence investors can expect good returns from this IPO. It is not the first exchange to do so. NASDAQ Composite is listed on NASDAQ stock market, so is Shanghai Composite Index listed on Shanghai stock exchange.
Since BSE is a prestigious name, everyone would like to have a piece of it, i.e, become a shareholder. Life Insurance Corporation and State Bank of India are the domestic shareholders of BSE.
Dalal Street hopes that the price of each share can go up to Rs 500-600, which will increase the size of the issue to Rs 1,500-2,000 crore.