India's oldest stock exchange BSE has fixed the price band for its upcoming initial public offering (IPO) at Rs 805-806 per share. The bourse expects to raise capital to the tune of Rs 1,243 crore through the sale of its IPO.
The IPO opens on January 23 and closes on January 25, which will be the first by a domestic stock exchange. During the initial share sale, shareholders will sell 15.43 million shares estimated to be around Rs 1,243.44 crore at the higher end of the price band.
The IPO of 15,427,197 shares of face value of Rs 2 each will constitute up to 28.26 per cent of the fully-diluted post offer issued share capital of BSE, it said in a public notice.
The company said bids for the issue can be made for a minimum of 18 shares and in multiples of 18 thereafter. Earlier this month, capital market regulator Sebi had given its final go-ahead to the draft prospectus for the IPO.
Among the existing shareholders are Bajaj Holdings Investment, Caldwell India Holdings, Acacia Banyan Partners, Singapore Exchange, Mauritius-based arm of American investor George Soros' Quantum Fund and foreign fund Atticus. There are an estimated 9,000 shareholders in BSE, where originally mostly brokers held shares.
However, a host of foreign investors and domestic financial institutions have acquired shares over the years and the IPO will provide some of them an exit window to monetise their assets.
BSE shares will be listed on NSE as Sebi rules do not allow self-listing for an exchange. Meanwhile, rival NSE had filed draft papers with Sebi last month for an estimated Rs 10,000 crore IPO.
The issue is being managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory and Securities (India) Pvt, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals.