The Singapore Stock Exchange (SGX) and Deutsche Borse are two of some of the leading stock exchanges that may get to buy a stake in Bombay Stock Exchange (BSE).
The London Stock Exchange (LSE) and NASDAQ are two other exchanges that seem to be interested in acquiring a stake in BSE. At one point of time, even NYSE was considering an investment in BSE and was said to have done a due diligence. This was before the government had stipulated a 5% limit for a foreign investor in stock exchanges. NYSE has now invested $115 mn in the National Stock Exchange for a 5% stake (See Related Post).
BSE seems to be in a hurry to find a strategic partner as soon as possible as it wants to complete its IPO before May 2007. A strategic partner is expected to give BSE a higher valuation. Going by the valuation that has NSE received for its stake sale to NYSE and other three foreign entities, it seems that BSE will get anywhere between $750 mn and $1 bn.
Currently, BSE senior management and merchant bankers are busy in fulfilling formalities related to finding a partner and filing a draft prospectus. BSE will also have to increase its capital base from the present Rs. 70 lakhs and is considering a bonus to meet the minimum capital requirements.
Read the article in Business Standard.
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