Leading stock exchange BSE may look to raise Rs 800 crore through its much-awaited initial public offering (IPO), which is expected to hit next financial year.
The draft papers for the public issue will be filed in the first quarter (April-June) of the next financial year, sources said.
The exchange has already appointed Edelweiss Financial Services as the lead merchant banker and AZB & Partners and Nishith Desai Associates as legal advisors to the issue.
According to sources, the exchange will mop-up around Rs 800 crore through its IPO.
When asked for comments, a BSE spokesperson said, “the exchange hopes to complete the formalities within 9 to 12 months. It has already appointed merchant bankers and lawyers for the purpose of preparing of documents including DRHP. Initial meetings have already been conducted amongst different participants for document preparation.”
A committee of BSE senior management, its board members and shareholders have been overseeing the progress in this regard, he added.
The exchange, earlier this month, said it plans to come out with its initial share-sale program in the next six-nine months. The announcement came after receiving in-principle approval from markets regulator Sebi for listing.
BSE, in January, had sought approval from the Securities and Exchange Board of India (Sebi) for launching the IPO, saying it is in compliance with all the requirements for listing.
The exchange has been seeking nod to get listed for a long time, but necessary clearances were not forthcoming on one issue or the other.
While BSE has always been open to cross-listing – listing its shares on a rival exchange platform – its competitor National Stock Exchange (NSE) has been against such listing.
Presently, Multi Commodity Exchange of India is the only listed bourse in the country.
In a letter to Sebi in January, BSE had said it is in full compliance with the requirements of the new SECC (Stock Exchanges and Clearing Corporations) Regulations and therefore, it can proceed with its IPO plans.
The exchange had requested Sebi to provide approval “permitting BSE to proceed with the IPO and listing of BSE’s shares on a recognised stock exchange”.
Sebi, in January, had amended the existing SECC regulations to make it easier for stock exchanges to list their shares through an IPO.
The move follows demand from investors in stock exchanges for listing of the bourses which can provide them an opportunity to unlock the value of their investments.