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To divest 51 per cent equity; proposes IPO

Mumbai , July 7

The Bombay Stock Exchange proposes to divest 51 per cent of its equity — 26 per cent to a strategic investor and 25 per cent to public through an IPO.

The BSE has appointed Kotak Mahindra Capital Company as advisors for the dilution of the equity.

The oldest stock exchange in the country that has corporatised itself recently, is required to reduce its members stake from 100 per cent to 49 per cent as per the regulations.

Mr Rajnikant Patel, Managing Director and CEO of Bombay Stock Exchange, on Friday said the exchange is awaiting guidelines from the Securities and Exchange Board of India on the dilution of equity.

According to the plan, 26 per cent of the equity will be allotted to a strategic investor — either Indian or international including multilateral agency and banks, or other stock exchanges. In the next stage, 25 per cent of the equity will be offered to public and the exchange will get listed, said Mr Patel.

He said the process of equity dilution would have to be completed by May 2007. However, the BSE is thinking of completing the process by December 2006.

The commodity bourse MCX Ltd is the first exchange in India to finalise plans to go in for listing.

MCX had filed the draft prospectus with SEBI and it is expected to come out with the issue shortly.

Mr Patel was speaking at a function to celebrate the 132nd foundation day of the BSE.

On the occasion, BSE has launched a Web site in Gujarati. "Very few institutions have reached this landmark and by launching a Web site in Gujarati, we are trying to reach to the lowest common individual in capital market," said Mr Patel. The link for the Web site is available on the BSE-India Web site.

Mr Patel also announced that BSE's Web site in Hindi would be launched by Diwali this year.

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