The BSE has filed the Draft Red Herring Prospectus (DRHP) with the markets regulator on Friday, bringing it a step closer to listing its shares.
The BSE has filed the Draft Red Herring Prospectus (DRHP) with the markets regulator on Friday, bringing it a step closer to listing its shares.
The BSE IPO has been long time coming it was held up because of a lack of clarity on the rules of listing a stock exchange. The BSE is the oldest stock exchange in Asia and the largest in terms of the number of companies listed on it.
Here are ten things you need to know about the IPO
-- BSE will be listing its shares on the National Stock Exchange (NSE). This is because Securities and Exchange Board of India (Sebi) doesn't allow self-listing of shares.
-- BSE hopes to raise about Rs 1,200 to Rs 1,300 crore from the IPO. However, none of the proceeds from the IPO will benefit any BSE directors, key management personnel or Group companies, Zee Business said.
-- The Singapore Exchange which is one of the stake holders in the exchange, it likely to sell off its entire 4.7% holding.
-- Out of the nearly 9,300 stakeholders, only 262 of them are likely to sell their shares in the proposed IPO. The shareholders are expected to sell nearly 3 crore shares of the exchange and cash out.
-- The shares will be put on sale via Offer For Sale, which lets existing promoters dilute or divest their entire stake.
-- Deutsche Boerse, Life Insurance Corporation (LIC), and State Bank of India, who are all own stake in the BSE, are not likely to sell their stake in the IPO.
-- BSE will become the first Indian stock exchange to go public. The Multi Commodities Exchange became the first Indian bourse to go public, in 2012.
-- BSE will be selling 29.96 million shares or nearly 28% of its stake in the IPO. The shares would be in the price band of Rs 400 to Rs 500 crore, valuing the BSE at Rs 5,000 crore.
-- BSE has picked Axis Bank, Edelweiss, Jefferies and Nomura as the joint coordinators.
-- SBI Capital Markets, SMC Capitals, Motilal Oswal, Spark Capital, are the other bookrunners.
According to a Reuters report, BSE was long-planning to launch its IPO but had put it off because of a lack of clarity on the rules for stock exchanges to list.
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