The Bombay Stock Exchange stock made a strong debut on the National Stock Exchange on Friday with the scrip opening at Rs 1,089 up a remarkable 35% over the issue price of Rs 806.
The Bombay Stock Exchange (BSE) stock made a strong debut on the National Stock Exchange (NSE) on Friday with the scrip opening at Rs 1,089 up a remarkable 35% over the issue price of Rs 806. The stock gained as much as 48% intra-day after the R1,234.4 crore initial public offer (IPO) was subscribed more than 51 times when it closed last week. “The issue has got great response. However, investors should first read about BSE and if they are convinced about the business model then only one should invest,” said Ashish Chauhan, MD and CEO of the bourse.
The stock price of BSE ended 1.33% lower at Rs 1,070.55 a share after hitting an intra-day high at Rs 1,200.
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Chauhan said that the premium of 34.62 % was a pleasant surprise for BSE and all shareholders. “Basically pricing of BSE was done by book building framework. Shareholder committee was setup and BSE did not get any money from the IPO. It was basically 28.3% of the shares sold by existing shareholders. They had created a committee of shareholders from FIIs, brokers etc. After meeting various merchant bankers the share price was determined and it was considered all right. Of course the budget has helped in today’s debut,” added Ashish Chauhan.
The issue by BSE, also the first share sale by a domestic stock exchange, was open to bidding on January 23-25. BSE operates in three primary lines of business, the listing business, the market business and the data business. Jefferies, Edelweiss Nomura, Motilal Oswal and SBI Capital Markets are the book running lead managers of the issue.