The country’s premier stock exchange Bombay Stock Exchange (BSE) on Monday said it had set up a committee to process its proposed initial public offering (IPO). The exchange said it may list during the next calendar year.
Ashishkumar Chauhan, interim chief executive officer, BSE Limited, said, “We are working on the process to get listed in the Indian stock exchanges. We have set up an IPO committee and we are in the process. We hope to get listed in the first or second quarter of calender year 2013.”
He added, the Exchange is looking at listing in one of the stock exchanges and is in the process of preparing a draft red herring prospectus (DRHP).
“We are a cash-rich exchange and want to give our investors an exit route. An IPO would be the best option for them,” he added.
Currently, broking houses hold around 43 per cent in BSE, followed by foreign institutional investors (FIIs) with 39 per cent and FIs and retail investors the remaining.
According to Securities and Exchange Board of India’s (Sebi) rules, the Exchange needs to dilute up to 25 per cent and it will work out with the existing investors on how to go ahead with this, said Chauhan.
“We want to capitalise on the first QFI investments. A US-based QFI had invested a good amount for equities. We need to attract such investments in a big way. We are facilitating our broking houses to attract such investments in a big way. And towards this, a broking house will set up its office at Dubai and expect to go on stream in early September”.
On the launch of the BSE 100 index, he said, it has become a major success and helps broking houses save a whopping Rs 1,200 crore every year. The daily volume has gone up to Rs 35,000-45,000 crore with a market share of over 35 per cent, he added.
Commenting on BSE’s cost competitiveness in the futures and options segment, he said BSE charges Rs 50 for every Rs 1 crore transacted, which is 85 per cent lower than other exchanges. The exchange does not charge any transaction cost for futures, resulting in transaction cost on futures being lower by 22 per cent, he said.
