BSE eyes Rs 5K crore valuation in IPO, selects 14 banks for issue

BSE eyes Rs 5K crore valuation in IPO, selects 14 banks for issue Mumbai: Leading stock exchange BSE is looking at a valuation of about Rs 4,000-5,000 crore for its initial public offering (IPO), which is likely to hit the market June next year.

The exchange is seeking an offering that would value it at about Rs 4,000-5,000 crore, sources close to the development said.

Besides, the BSE has finalised 14 banks, including five foreign banks, to manage its planned IPO, sources said.

The foreign banks are Bank of America Merrill Lynch, JPMorgan, Barclays Capital, UBS and Deutsche Bank. The Indian banks include ICICI Bank and Kotak Mahindra Bank.

Market sources said the IPO may fetch Rs 800-1,000 crore.

The BSE would be the second bourse to get listed after Multi Commodity Exchange of India (MCX) made its debut in March this year.

At Rs 5,000 crore, BSE's valuation would be at a 37 percent discount to MCX's current market capitalisation of Rs 7,881 crore.

The regulator Sebi had this June notified new rules for ownership and governance of bourses, including norms for their listing, which bans self-listing.

The proposed IPO is primarily aimed at giving an exit to existing shareholders who hold over 41 percent of equity.

The BSE had reported a net profit of Rs 178 crore on a revenue of Rs 578 crore last fiscal.

PTI