BSE completes demutualisation process

Bombay Stock Exchange (BSE) announced today that it has successfully completed the process of demutualisation mandated by Securities and Exchange Board of India (SEBI), in terms of The BSE (Corporatisation and Demutualisation) Scheme, 2005.

As per the Scheme, BSE was required to ensure that at least 51% of its equity shares are held by public other than shareholders having trading rights in the manner and within the period prescribed in sub-section (8) of Section 4B of the Securities Contracts (Regulation) Act, 1956. As part of the process, BSE had earlier announced strategic tie-ups with two leading exchanges of the world viz. Deutsche Börse and Singapore Exchange with fresh issue of equity shares representing 10% of the equity capital.

Additionally, shares tendered by trading member- shareholders of BSE in an offer for sale programme, have been placed with nineteen domestic and overseas investors. The investor group includes pedigreed marquee domestic and overseas institutions as well as select domestic corporates and High Networth Individuals. Both the fresh issue of shares and placement of shares tendered in the offer for sale programme were priced at Rs.5200/- per share, placing the market capitalization of BSE around $1 billion, reflective of strong global interest in the Indian capital markets.

Mr. Rajnikant Patel, Managing Director & CEO, BSE, said that, "The successful completion of the demutualisation scheme represents a watershed event in the history of BSE. With the new ownership structure in place, BSE is well poised to pursue growth opportunities aggressively. We sincerely thank SEBI, Ministry of Finance, Reserve Bank of India, Member Brokers and Investors for their whole hearted support."

Kotak Investment Banking was the exclusive financial advisor to this epochal transaction.

About Bombay Stock Exchange: BSE is the oldest stock exchange in Asia. It was established in 1875 as "The Native Share & Stock Brokers Association."

BSE reaches out to more than 400 cities and towns in India. It has 4,800 listed companies on the board, with over 7,500 scrips being traded. The companies listed on BSE command a total market capitalisation of Rs 39,96,859 crore ($975 billion). BSE offers trading in the equity (cash and derivatives) and debt (corporate and government securities) segments. For further information please visit www.bseindia.com