BSE to sell 1% stake to HDFC Bank

Written by fe Bureau | Mumbai | Updated: Jun 30 2011, 09:04am hrs
The annual general meeting of the Bombay Stock Exchange (BSE), which was held on Wednesday, has approved 400% or R4 per share dividend to its shareholders.

Also, a proposal to issue a 1% stake to the private sector lender HDFC Bank on a preferential basis was also approved. HDFC Bank will be allotted 10 lakh shares at R375 per share valuing the exchange at over R3,900 crore.

The proposed stake sale is expected to restore confidence of shareholders. Singapore Stock Exchange (SGX) and Deutsche Bourse, which already holds 5% stake in BSE, will also be offered a corresponding number of shares. The AGM also approved the appointment of three new directors. Accordingly, Anil Shah, founder of SPAN Group, will join BSE as trading member director; Sudhakar Rao, former chief secretary with Karnataka government, will join as Public Interest Director (PIB) and Deepak Chatterjee, former Indian ambassador to European Union, has been appointed as shareholder director.