BSE’s initial public offering (IPO) — the first by a domestic stock exchange in the country — to raise up to R1,243 crore was subscribed 0.50 times, or 50%, on the first day on Monday with investors bidding for 54 lakh shares of the total 1.07 crore shares on offer.
The stock exchange had fixed a price band of R805–R806 per share. The issue is a pure offer for sale (OFS); the proceeds of the offer will go to the selling shareholders in the proportion of equity shares offered by them.
The issue subscribed 5.1 lakh shares of the total 30.8 lakh shares from the Qualified institutional buyers (QIBs) category. High net-worth (HNIs) individuals bid for 2.8 lakh shares of the 23.1 lakh shares reserved for them. Retail investors bid nearly 9% of their quota of 53.9 lakh shares offered to them.
The company on January 20 raised R373 crore by allotting 46.28 lakhs shares to 24 anchor investors at a price of R806 a piece. Among the investors who were allotted shares in the pre IPO placement include Goldman Sachs AMC, ICICI Prudential Mutual Funds, Kotak Mutual Funds, DSP Blackrock Alternative Investment Fund, Reliance Capital Trustee, among others.
BSE operates in three primary lines of business, the listing business, the market business, the data business. BSE posted a net profit of R1,319.1 crore in the financial year ended March 31,2016 against R756.5 crore in the previous year.
Jefferies, Edelweiss Nomura, Motilal Oswal and SBI Capital Markets are the book running lead managers of the issue.