BSE Now a Step Closer to Going Public, Files IPO Papers With SEBI

Shares worth over Rs 1,200-1,300 cr could be sold in the public offer. NSE also plans to file for listing next year.

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Bombay Stock Exchange. (Photo: Reuters)

Moving closer to becoming a publicly-listed exchange, Asia’s oldest bourse Bombay Stock Exchange (BSE) on Friday filed draft papers for its IPO with markets regulator Securities and Exchange Board of India (SEBI).

The much-awaited public offer of BSE is expected to be entirely an offer for sale (OFS) by the existing shareholders.

Sources said the exchange has filed IPO papers with SEBI and shares worth over Rs 1,200-1,300 crore could be sold in the public offer.

The board of directors, at its meeting on Wednesday, approved the draft red herring prospectus (DRHP).

While rival NSE has announced IPO plans, BSE has taken the lead by filing the draft papers.

BSE had received in-principle approval from SEBI earlier this year to list its shares.

As on date, the exchange has over 9,000 shareholders, including brokers and institutions. BSE 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 percent increase in its consolidated net profit at Rs 52.72 crore for the first quarter ended June 2016.

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.

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