BSE receives overwhelming interest for 41% stake

Bombay Stock Exchange Limited (BSE) after a Board meeting held today announced that it has received an overwhelming interest from investors across the globe and India to purchase the remaining 41% of its stake held by member brokers who have tendered their shares as part of the ongoing demutualization.

BSE has received interest from over 20 leading domestic financial institutions, foreign funds, domestic corporate houses and reputable high networth individuals, for substantially more than that required for achieving the demutualization of BSE.

Upon reviewing the interest received, BSE proposes to finalise the sale of 41% of its shares to select investors at a price of Rs. 5,200 per share, the same price as for strategic partners, in order to widen the profile of its shareholders.

The sale of shares would be subject to relevant regulatory approvals. Kotak Investment Banking was the sole financial advisor to Bombay Stock Exchange on the transaction.

Rajnikant Patel, MD & CEO, BSE, said: "The response to BSE investment opportunity has been truly overwhelming and we are delighted to have, as our investors, pedigreed overseas exchanges as well as domestic & foreign institutions. The new ownership pattern of the exchange will significantly strengthen its institutional character. It is truly transformational and marks a watershed event in the evolution of Bombay Stock Exchange. In the new framework, the Exchange is indeed well poised to energetically pursue business growth."

Uday Kotak, executive VC & MD, Kotak Mahindra, said, "We consider this as a landmark transaction for the Bombay Stock Exchange Limited and the quality of response from various investor segments demonstrates the level of keen interest in the exchange's space."