BSE shares list at a 35% premium of Rs1,085 on NSE
03 February 2017
Shares of BSE Ltd listed on Friday on rival National Stock Exchange at Rs1,085, a 35-per cent premium over the issue price of Rs806. At 10:07 am the stock was trading 43 per cent higher at Rs1,159.
Shares of BSE Ltd, India's second-biggest stock exchange and Asia's oldest, rose nearly 50 per cent in early morning trade on NSE, after successfully raising about Rs1,243 crore in an initial public offer that was subscribed 51 times.
Investors lapped up 15.4 million shares of Rs2 face value each in an IPO that was open for subscription between 23 and 25 January 2017.
The BSE IPO was in the nature of offer for sale, or OFS, that enables existing shareholders to sell their holdings and encash their profit.
The Rs2 face value shares were offered at a price band of Rs805-806 per share in the offer for sale.
The exchange will not receive any proceeds of the offer and all the proceeds of the offer will go to the selling shareholders in the proportion of the equity shares offered by them.
The BSE share sale was intended to achieve the benefits of listing to both the bourse and the holders of equity. The listing of the equity shares will also enhance its visibility and brand image and provide liquidity to its existing shareholders.
The exchange had earned net profit of Rs86 crore for the six-month period ended 30 September 2016 on total income of Rs273 crore.
In 2015-16, the BSE's net profit stood at Rs132 crore on total income of Rs516 crore.