BSE may tap capital market for future growth

23 June 2007

Mumbai: The Bombay Stock Exchange (BSE) is expected to tap the capital market for raising resources for future growth soon after completing divestment of 51 per cent for demutualization.

"We will examine the possibility of entering the capital market if we require funds for our future business plans," Rajnikant Patel, managing director and CEO of BSE, said on the sidelines of a national seminar on integrated risk management.

While BSE, which is already corporatised, may not face any difficulty in tapping the market, Patel said the business plan for the future is currently in the planning stage. He, however, declined to give details.

BSE, which is a debt-free exchange, has a cash reserve of Rs1,000 crore. Ther exchange has recently made private placement of a few overseas investors to meet the 51 per cent dilution of its stake to complete the demutualisation process.

Patel, however, said BSE is interested in the Calcutta Stock Exchange. He said he will meet CSE officials to carry forward the negotiations.

CSE has decided to form a negotiating sub-committee to discuss on divestment which would be responsible to finalise investors and valuation at which the divestment would be made.
Patel refused to speak on the possibility of BSE''s acquisitions overseas.