BSE likely to file draft IPO prospectus early next month

Leading bourse BSE is targeting to file draft papers with capital markets regulator Sebi for its much-awaited initial public offer (IPO) by early next month.

BSE is looking to raise about Rs 800 crore from its initial share-sale programme, which is expected to be entirely an offer for sale (OFS).

As per sources, the exchange plans to file IPO papers with Sebi in early September to mop-up around Rs 800 crore.

As many as three crore shares are estimated to have been tendered by the BSE shareholders for the offer for sale in the proposed IPO, earlier this week.

The exchange has set up an escrow account wherein shareholders can tender shares for the OFS in the proposed IPO.

Asia's oldest bourse, which earlier this year received in-principle approval from markets regulator Sebi to list its shares, plans to sell up to 30 per cent stake in IPO.

A maximum of 30 per cent of BSE's equity can be diluted through the OFS. As on date, the exchange has about 9,283 shareholders comprising brokers and institutions.

BSE (earlier known as the Bombay Stock Exchange) has appointed Edelweiss Financial Services as the lead merchant banker and AZB & Partners and Nishith Desai Associates as legal advisors to the IPO.

The exchange had reported a 40 per cent increase in its consolidated net profit at Rs 52.72 crore for the first quarter ended June 2016.

The Securities and Exchange Board of India (Sebi) notified amendments to the Stock Exchanges and Clearing Corporations regulations on January 1. The new rules are aimed at making it easier for stock exchanges to list their shares through an IPO.

Soon after the amendments, the exchange had sought approval for launching the IPO, saying it is in compliance with all the requirements for listing.

Presently, Multi Commodity Exchange of India is the only listed bourse in the country.

BSE's closest competitor NSE also plans to file for listing next year.