BSE Limited is the owner and operator of BSE Exchange (Bombay Stock Exchange), India largest stock exchange by number of companies listed.
Issue Details
- IPO Open : 23 Jan to 25 Jan 2017
- Issue Price band: Rs 800 – 850
- Issue Size: approx Rs 1311 crore
- Market lot : 17
- Max Shares for Retail – 221
IPO Issue Allocation
- Qualified institutional buyers (QIBs) – 50% per cent of the total issue size.
- Non-institutional investors (NIIs) – 15% per cent of the issue size.
- The retail quota limit in the issue = 35%
Objective of the issue:
The company 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 objects of the offer (OFS) are:
- 1. To achieve the benefits of listing the equity shares on NSE and
- 2. For the sale of equity shares by the selling shareholders.
Background:
Bombay Stock Exchange was established in year 1875 as the first stock exchange in Asia. Today BSE has over 5000 companies listed on it, the highest in any exchange around the world. Worlds two leading global exchanges, Deutsche Bourse and Singapore Exchange are strategic partners of BSE. BSE offers trading in Equity, Debt Instruments, Derivatives, Mutual Funds and SME Equity. The S&P BSE SENSEX is India most widely tracked stock market benchmark index. BSE also offer services including risk management, clearing, settlement, market data services, IT services and solutions, licensing index products such as the S&P BSE SENSEX and financial & capital markets trainings.
BSE Limited own and operate the BSE exchange platform (formerly, the Bombay Stock Exchange), the first stock exchange in Asia, which was formed on July 9, 1875. As of June 30, 2016, the BSE was the world’s largest exchange by number of listed companies, and India’s largest and the world’s 11th largest exchange by market capitalization, with US$ 1.52 trillion in total market capitalization of listed companies.
As the operator of the BSE, we regulate listed issuers and provide a market for listing and trading in various types of securities as may be allowed by SEBI from time to time. We operate in three primary lines of business, namely:
1. the listing business , which consists of the primary market, which relates to the issuance of new securities;
2. the market business , which consists of (i) the secondary market, which relates to the purchase and sales of previously issued securities, (ii) BSE StAR MF (“BSE StAR”), our online platform for the placement of orders and redemptions of units in mutual funds, (iii) NDS -RST, our platform for the reporting of over-the-counter corporate bond trading, (iv) membership, which includes membership in the Exchange, membership in our clearing corporation ICCL, and depository participants in our depository CDSL, and (v) post – trade services, namely the clearing corporation and depository; and
3.the data business, which consists of the sale and licensing of information products.
As at June 30, 2016, the BSE had 1,440 unique members across all segments, and in Fiscal Year 2016 the BSE accepted an average of 284.92 million orders and 1.55 million trades in equity shares per trading day, placing it as the 12th most active exchange in the world in terms of electronic book trades in equity shares. (Source: World Federation of Exchanges(“WFE”) statistics). During Fiscal Years 2014, 2015 and 2016 and the three months ended June 30, 2016, the BSE reported 24,663 million, 63,385 million, 70,376 million and 17,618 million electronic book orders in equity shares, respectively
Financials:
In FY2016, revenue from operations (comprised of revenue from securities services, services to corporate and data dissemination fees), income from investments and deposits and other income comprised of 64.8%, 28.8% and 6.4% of our total revenue, respectively.
In the three months ended June 30, 2016, revenue from operations, income from investments and deposits and other income comprised of 63.4%, 26.5% and 10.1% of our total revenue, respectively.
Our EBITDA margin for FY 2014, FY 2015, FY 2016 and the three months ended June 30, 2016 was 54.3%, 48.9%, 45.7% and 47% , respectively. Our profit after tax margin for FY 2014, FY 2015, FY 2016 and the three months ended June 30, 2016 was 25.5%, 20.8 %, 18.6%and 23.2%, respectivel
Promoters : Deutsche Borse, Singapore Exchange, SBI, LIC holds 4.7% each in BSE.
Competitors : NSE
Anchor Investors: Will be known one day before the issue open
Valuation as compared to its peers: Attractively Priced
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Should you invest:
As there are not many listed peers, you have very limited options if you want to invest in this space. Given that it is market leader, there will be lot of institutional interest in this stock as well. So on that basis, you can consider to invest for long term
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