Caldwell AMC set to buy 4% in BSE

Mumbai, Apr 27 | Updated: Apr 28 2007, 07:49am hrs
After inducting stock exchanges as strategic partners, the Bombay Stock Exchange (BSE) is now planning to rope in an international asset management company as one of its investors in the foreign direct investment category.

Asias oldest bourse has plans to sell 4% stake to Caldwell Asset Management Company of the US and an application in this respect has been sent to the Foreign

Investment Promotion Board (FIPB), the body which clears foreign investment proposals which do not fall under the automatic route.

According to informed sources, Caldwell will buy 4% stake (close to 3 lakh shares) in BSE at a price of Rs 5,200 a share, the rate at which the exchange sold 5% stake each to Deutsche Brse and Singapore Stock Exchange (SGX).

The stake sale to Caldwell will fetch the BSE around Rs 151 crore. It has already received Rs 189 crore each from Deutsche Brse and SGX.

Caldwell offers four schemes Caldwell Balanced Fund, Caldwell Income Fund, Caldwell Canada Fund, and Caldwell Exchange Fund. Thomas S Caldwell is the chairman of Caldwell Financial Ltd, which is the holding company of subsidiary Caldwell AMC, while J Dennis Freeman is president of Caldwell Securities Investment Management.

The BSEs top brass was tightlipped about the latest stake sale, but informed sources said even though its application is yet to come up for hearing before the FIPB, the senior management of the exchange is busy finalising details of another 12% stake sale with a different set of foreign investors, well ahead of the May 19 deadline for completing the process of demutualisation. The exchange is also working overtime to finalise a set of investors for another 25% stake to be sold to domestic institutional investors and high net-worth individuals.