BSE Limited IPO owns and runs the BSE Exchange (also called the Bombay Stock Exchange), which has more companies listed than any other stock exchange in India. The Bombay Stock Exchange was the first stock exchange in Asia. It opened in 1875. Today, more than 5,000 companies are listed on the BSE. This is the most of any stock exchange in the world. Deutsche Bourse and Singapore Exchange, which are the two biggest stock exchanges in the world, are strategic partners of BSE.
Equity, Debt Instruments, Derivatives, Mutual Funds, and SME Equity can all be traded on the BSE. The S&P BSE SENSEX is India’s most well-known benchmark index for the stock market. BSE also offers services like risk management, clearing, settlement, market data services, IT services and solutions, licensing index products like the S&P BSE SENSEX, and financial and capital markets training.
The market went into a tailspin after demonetization, and primary market activity ceased entirely. But the long-awaited IPO of BSE is breaking the ice for both CY 2017 and the fourth quarter of FY16-17 as the first main board IPO.
Founded in 1875 as The Bombay Stock Exchange, BSE LTD (now known as just BSE) is Asia’s oldest and most prestigious stock exchange, synonymous with the term “stock market” according to its Sensex and Dalal Street indices.
As of now, BSE is the world’s quickest stock exchange in addition to being the largest exchange in terms of the total number of listed businesses (5,329), the largest exchange in India, and the tenth largest exchange in terms of market value (US$ 1.7 trillion). Because of this, it is currently the pioneering stock exchange in India to become public. In addition to its trading products, BSE offers information technology services and solutions, a listing service, marketing services, data services, and more.
BSE is releasing its first initial public offering (IPO) of 15427197 equity shares of Rs. 2 each through offer for sale by current stakeholders via book building approach with a price band of Rs. 805-806. This IPO is intended to investigate shareholder values and listing benefits. Revenue for the BSE is expected to range between Rs. 1241.89 and Rs. 1243.43 crore (based on lower and upper price band).
Subscriptions for the issue will be accepted starting on January 23, 2017, and will end on January 25, 2017. An application must be submitted for a minimum of 18 shares, and in multiples of 18 shares thereafter. After the shares are allocated, they will be listed only on the NSE. As a result, after the share is listed, traders and investors who aren’t already NSE members will need to complete the NSE membership application process. Up to 28.26% of BSE’s fully diluted issued share capital following the offer shall be subject to the offer.
In May 2007 and April 2008, BSE issued shares to foreign investors/strategic partners at a price of Rs. 5200 per share; in June 2015, BSE issued shares to the same investors/partners at a price of Rs. 383.30 per share (for Re. 1 paid up); and in December 2017, BSE issued bonus shares at a ratio of 12 shares for every 1 share held. They have paid a dividend of 750% for FY16 and plan to continue doing so after going public.
BSE Has Only a Few Strengths
1. A well-known brand with a history of coming up with new ideas
2. A business model that is diverse and integrated, and a strong relationship with market participants
3. Infrastructure and technology that is up to date
| Particulars | For the year/period ended (in Rs. Million) | |||||
|---|---|---|---|---|---|---|
| 30-Jun-16 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | 31-Mar-13 | 31-Mar-12 | |
| Total Assets | 30,363.5 | 29,176.7 | 28,758.0 | 25,923.0 | 27,273.6 | 27,915.7 |
| Total Revenue | 1,424.4 | 5,158.9 | 4,391.8 | 3,328.3 | 3,389.1 | 4,028.0 |
| Profit After Tax (PAT) | 454.3 | 1,319.1 | 756.5 | 747.7 | 398.2 | 1,116.0 |
The offer (OFS) has two goals:
1. To get the benefits of listing the equity shares on NSE.
2. To allow the selling shareholders to sell their equity shares.
The company won’t get any of the money from the offer. Instead, all of the money will go to the selling shareholders in proportion to the number of equity shares they are selling.
| IPO Date | Jan 23, 2017 to Jan 25, 2017 |
| Listing Date | Friday, February 3, 2017 |
| Face Value | ₹2 per share |
| Price | ₹805 to ₹806 per share |
| Lot Size | 18 Shares |
| Issue Size | 15,427,197 shares of ₹2 (aggregating up to ₹1,243.43 Cr) |
| Offer for Sale | 15,427,197 shares of ₹2 (aggregating up to ₹[.] Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE |
| Company Promoters | The company is professionally managed and does not have an identifiable promoter. There are no shareholders who control individually or as a group, 15% or more of the voting rights of the company. |
The IPO for BSE Limited starts on January 23, 2017, and ends on January 25, 2017. The bid date for the BSE Limited IPO is from 10 a.m. on January 23, 2017, to 5 p.m. on January 25, 2017. The last time to confirm a UPI Mandate is at 5 p.m. on the day the issue ends.
| Event | Tentative Date |
|---|---|
| Opening Date | Jan 23, 2017 |
| Closing Date | Jan 25, 2017 |
| Basis of Allotment | Dec 31, 2017 |
| Initiation of Refunds | Feb 1, 2017 |
| Credit of Shares to Demat | Feb 2, 2017 |
| Listing Date | Feb 3, 2017 |
The BSE Limited IPO lot size is 18 shares. A retail-individual investor can apply for up to 13 lots (234 shares or ₹188,604).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 18 | ₹14,508 |
| Retail (Max) | 13 | 234 | ₹188,604 |
| Listing Date | Friday, February 3, 2017 |
| BSE Script Code | |
| NSE Symbol | BSE |
| Listing In | |
| ISIN | INE118H01025 |
| IPO Price | ₹806 per share |
| Face Value | ₹2 per share |
The size of a BSE Limited IPO lot is 18 shares, and the minimum number of shares you can buy is.
You can apply for the BSE Limited IPO online, and you can pay with either UPI or ASBA. Your bank account’s online banking is where you can find the ASBA IPO application. Brokers offer the UPI IPO application, but they don’t do banking. Find out more about how to apply for an initial public offering (IPO) online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank, and SBI Bank.
The Basis of Allotment for the BSE Limited IPO will be finalised on December 31, 2017, and the shares will be put in your demat account by February 2, 2017. Check the status of the allotment for the BSE Limited IPO.
Friday, February 3, 2017, is the date for the BSE Limited IPO.
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