Times group eyes BSE pie

Bennett, Coleman & Co, owners of the Times Group, is believed to have bid for 2-3 per cent stake in the Bombay Stock Exchange (BSE).

A senior executive of the company said: "Yes we have bid for a small stake. BSE is expected to revert soon. We have not got the allotment though." Bennett, Coleman is supposed to have paid around Rs 70 crore for the stake.

BSE is divesting over 51 per cent equity, held by brokers, as part of its demutualisation- under which ownership of the exchange will be separated from the trading rights of brokers.

The exchange, which has appointed Kotak Mahindra Capital as its financial advisor, has been negotiating with corporates, banks, foreign funds and institutions for selling its stake. The deal is expected to be completed by the third week of May.

The BSE offer has attracted a bevy of Indian companies, which reportedly includes Bajaj Auto, Aditya Birla Group, Life Insurance Corporation, UTI, and State Bank Of India.

BSE has already sold 10 per cent equity stake to the Singapore Stock Exchange and the Deutsche Boerse. Of the remaining 41 per cent stake, the exchange is expected to divers over 25 per cent to domestic investors, while the rest will be given to foreign investors.

BCCL set up private treaties division where it does an ad-to-equity swaps with small- and medium-sized companies. It has already picked up stakes in nearly 50 companies including Pantaloon, Media Video Limited, SR Foils, Vishal Retail, Celebrity Fashions, SQL Star, Rajesh Exports and Provogue among others. Insiders say that this division is already worth Rs 1,500 crore.