BSE to file IPO papers with Sebi

Gearing up to launch its Rs 1,000-crore initial public offering, Asia’s oldest bourse, BSE, will soon approach the Sebi to file draft prospectus for the issue.

A board meeting was held in Mumbai on Wednesday to review the progress on the IPO plans and to discuss the draft red herring prospectus, which could be filed with Sebi in a few days, sources said.

Shares worth over Rs 1,000 crore could be sold in the IPO, which is expected to be entirely an offer for sale (OFS) by existing shareholders.

BSE received in-principle approval from Sebi earlier this year to list its shares.
 
The exchange received robust response for the proposed OFS from the shareholders who have offered to tender an estimated three crore shares. The shares which are not sold in the OFS would be locked in for a year from the date of allotment of shares in the IPO.

BSE had set up an escrow account wherein shareholders can tender shares for the OFS in the proposed IPO.

As on date, the exchange has about 9,283 shareholders, including brokers and institutions.

BSE (earlier known as the Bombay Stock Exchange) has appointed Edelweiss Financial Services as the lead merchant banker and AZB & Partners and Nishith Desai Associates as legal advisors to the IPO.

The exchange had reported a 40 per cent increase in its consolidated net profit at Rs 52.72 crore for the first quarter ended June 2016.

The Securities and Exchange Board of India (Sebi) notified amendments to the Stock Exchanges and Clearing Corporations regulations on January 1. The new rules are aimed at making it easier for stock exchanges to list their shares through an IPO.

Soon after the amendments, the exchange had sought approval for launching the IPO, saying it is in compliance with all the requirements for listing.

Presently, Multi Commodity Exchange of India is the only listed bourse in the country.

BSE's closest competitor NSE also plans to file for listing next year. It recently appointed Citigroup Global Markets, Morgan Stanley India, Kotak Mahindra Capital and JM Financial Institutional Securities as global co-ordinators to manage its IPO.