BSE creates history! Exchange lists at Rs 1,085, 34.62% premium over issue price
NEW DELHI: Asia’s oldest stock exchange BSE created history on Friday, as its shares got listed at a 34.62 per cent premium on rival NSE at Rs 1,085 compared with an issue price of Rs 806.
At 10.02 am, the stock was trading 40.19 per cent higher at Rs 1,130. This is the first-ever listing of a stock exchange in India.
Analysts were expecting the BSE stock to list at a premium of 5-15 per cent, as it was commanding over 20 per cent premium to the issue price in the grey market on Thursday.
MCX was the first commodity exchange to list on stock exchanges in India on March 9, 2012.
The first IPO of 2017, which was sold in the Rs 805-806 price band, had received a massive 51 times subscription during the bidding period between January 23 and 25.
BSE, which operates in three segments, is India’s largest, Asia’s oldest and world’s 10th largest stock exchange by market capitalisation.
The securities services business on the exchange brings in about 57 per cent of its revenues, followed by services to corporate and data dissemination fees, which accounts for 38 per cent and 5 per cent of the bourse’s revenues, respectively.
As of June 30, 2016, BSE had 1,440 unique members across all segments. In FY16, an average of 284.92 million orders and nearly 1.55 million trades in equity shares per day made BSE the world’s twelfth most active stock exchange.
Brokerage Nirmal Bang Securities in a report said lagging behind in adoption of derivatives hurt BSE, which lost its dominant position in the domestic market to NSE in the cash segment as well.
“Now BSE is trying to strike first with many newer products such as currency derivatives, mutual funds, debt market and international exchange. We feel the success of any of these activities can bring growth for BSE,” it said.
The exchange, meanwhile, is preparing the IPO for its arm CDSL, where it is required to cut its stake from 52 per cent at present as per a Sebi directive. BSE’s holdings in CDSL and Clearing Corporation is seen as value accretive for the bourse.
At 10.02 am, the stock was trading 40.19 per cent higher at Rs 1,130. This is the first-ever listing of a stock exchange in India.
Analysts were expecting the BSE stock to list at a premium of 5-15 per cent, as it was commanding over 20 per cent premium to the issue price in the grey market on Thursday.
MCX was the first commodity exchange to list on stock exchanges in India on March 9, 2012.
The first IPO of 2017, which was sold in the Rs 805-806 price band, had received a massive 51 times subscription during the bidding period between January 23 and 25.
BSE, which operates in three segments, is India’s largest, Asia’s oldest and world’s 10th largest stock exchange by market capitalisation.
The securities services business on the exchange brings in about 57 per cent of its revenues, followed by services to corporate and data dissemination fees, which accounts for 38 per cent and 5 per cent of the bourse’s revenues, respectively.
As of June 30, 2016, BSE had 1,440 unique members across all segments. In FY16, an average of 284.92 million orders and nearly 1.55 million trades in equity shares per day made BSE the world’s twelfth most active stock exchange.
Brokerage Nirmal Bang Securities in a report said lagging behind in adoption of derivatives hurt BSE, which lost its dominant position in the domestic market to NSE in the cash segment as well.
“Now BSE is trying to strike first with many newer products such as currency derivatives, mutual funds, debt market and international exchange. We feel the success of any of these activities can bring growth for BSE,” it said.
The exchange, meanwhile, is preparing the IPO for its arm CDSL, where it is required to cut its stake from 52 per cent at present as per a Sebi directive. BSE’s holdings in CDSL and Clearing Corporation is seen as value accretive for the bourse.
