BSE has selected 14 investment bankers for its forthcoming IPO slated during the first half of 2013
Mumbai: Premier stock exchange BSE moved closer to its initial public offering (IPO) plan by selecting 14 investment banks, including Bank of America-Merrill Lynch, JP Morgan, Barclays and UBS, for a public issue that is slated to hit the markets in the first half of next year, reports PTI quoting a top official.
"Yes, we have selected 14 investment bankers for our forthcoming IPO slated for the first half of 2013," BSE Chief Executive and Managing Director Ashish Kumar Chauhan told PTI.
The other lead managers to the issue include domestic majors including Kotak Mahindra Capital, ICICI Securities, Edelweiss Capital, Axis Capital, and IIFL, Chauhan added.
The BSE, which had reported a net profit of Rs178 crore on a revenue of Rs578 crore last fiscal, will be second bourse to get listed after Multi Commodity Exchange of India (MCX) made its debut in March this year.
He did not divulge the details of the issue saying the investment bankers will decide on the pricing and issue size.
BSE is seeking an offering that would value it at about Rs4,000-Rs5,000 crore, sources close to the development said.
The BSE has opted for the public issue to give an exit route to existing shareholders, who hold over 41% stake in the exchange.
The IPO could fetch Rs800-Rs1,000 crore, they added.
At Rs5,000 crore, BSE's valuation would be at a 37% discount to MCX's current market capitalisation of Rs7,881 crore.
Late last month, in an interview to PTI Chauhan had said that the oldest Asian bourse, had appointed a committee to finalise the i-bankers.
The BSE had in October once again retained the No1 slot as the world's largest exchange in terms of number of companies listed last month.
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With SP and BSP members staging a walk out, passing the motion for FDI in retail was a piece of cake for the UPA government
The United Progressive Alliance (UPA) government on Wednesday survived the attack from Opposition over foreign direct investment (FDI) in retail. The motion brought by the Opposition was defeated in the Lok Sabha. Out of total 471 members present in the House, 253 voted in favour while 218 opposed FDI in retail.
Members from both Samajwadi Party (SP) and Bahujan Samajwadi Party (BSP) both outside supporters of the government staged a walk out, thus reducing the numbers for the UPA government to win the motion.
Government has neglected the interest of farmers and small traders by deciding on FDI in multi-brand retail, SP chief Mulayam Singh Yadav alleged after his party's walkout.
"We walked out because the government has neglected the interest of farmers and small traders," he told reporters.
Asked why SP MPs walked out instead of voting against the motion, he said "this was the party's decision. The party has decided to stage walk out rejecting the move."
When it was pointed out that SP's decision has helped the government, he said "whatever the party has decided we do that exactly."
Expressing concern over the fate of farmers and small traders after FDI in retail, Yadav said the "interest of five crore small traders and 20 crore farmers and their families were sacrificed by the government's decision. That is why we have walked out."
Hours before the vote, the government sought to create a wedge among parties opposed to opening the retail sector to foreign companies, asking them to realise the politics of BJP.
"The question is not FDI as the decision to implement it is on the state governments. If the states have to decide, what are we deciding here. The only thing to be decided here is to support or oppose BJP's politics and condemn it," Parliamentary Affairs Minister Kamal Nath told reporters.
In reply to a poser on UPA's outside supporters SP and BSP opposing FDI in multi-brand retail, he said, "Speaking against FDI is a separate issue, because they can be against it. But I request all political parties to vote against the politics of BJP...it will be demonstrated in the voting on Wednesday. They will be defeated today," he said.
Earlier, his deputy Rajiv Shukla said government was in touch with various parties for their support.
"We are in touch with all (parties). We have requested them to support us. FDI will not hurt the interests of farmers or small traders. In fact, it will help them," Shukla said.
While both SP and BSP had opposed FDI on Tuesday during a debate on the issue, they had not made it clear whether they will support the motion.
BJP leader Sushma Swaraj had asked the two parties to support the motion, saying their fears that the government could fall were "unfounded."