BSE Ltd’s shares fell over 4% in its second trading session as investors booked profit after the scrip returned stellar gains on its listing debut on Friday.
BSE Ltd’s shares ended down 3.74% at Rs 1029.2 on NSE, after falling as much as 4.31% to Rs 1023.1.
Broader markets ended firm, with the Sensex closing up 0.7% at Rs 28,439.28 points and Nifty closing up 0.69% at 8,801.05 points.
Earlier on Friday, BSE Ltd, the first listing of the new year 2017, opened for trading at Rs 1,085, a stellar 34.6% premium to its offer price of Rs 806 per share. The shares of India’s first stock exchange to be listed soon soared further to hit a high of Rs 1,200.
Interestingly, BSE is listed on the rival exchange NSE, due to SEBI’s regulations prohibiting exchanges from self-listing their stocks.
BSE Ltd raised Rs 1,243 crore for its promoters and existing shareholders by selling a total of 1.54 crore shares. The IPO values the stock exchange at Rs 4,400 crore. The sale proceeds would go to the shareholders selling their stake, and not to the company.
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The first mega IPO of the year had got an overwhelming response with an oversubscription of over 50 times the issue size. Institutional investor had bid for 48 times the shares reserved under the category.
Most brokerages and analysts recommended subscribing to the issue, given its low pricing, stable earnings from corporate services, potential upside to exchange business in the country, and other such factors. The Financial Express had earlier reported that retail investors must consider certain risks including current shareholders’ exiting the company, heavy dependence on equity trade outside the company’s control, smaller market share, valuation and other concerns.
Check out the details here: BSE IPO: As analysts recommend buy, watch out for these 5 risks
BSE Ltd is the owner of the Bombay Stock Exchange, Asia’s oldest stock exchange. The company has about 9,500 member-shareholders. It earned Rs 104 crore in profit in the first half of the current financial year 2016-17, as compared to Rs 122 crore for the full year 2015-16.
With 5,868 companies listed on the main board, it is the largest exchange by the number of listed companies. It is India’s largest and the world’s 10th largest exchange by market capitalisation, with $1.7 trillion in total market capitalisation of listed companies.