BSE’s Mega IPO Subscribed 51 Times On Final Day
The portion reserved for high networth individuals was subscribed 159 times.
The first initial public offering by an Indian stock exchange was subscribed 51.06 times the number of shares issued on the third and final day of bidding.
The Bombay Stock Exchange Ltd. (BSE) IPO received bids for 55,14,14,862 shares as against the book size of 1,07,99,039 shares, according to data available on the National Stock Exchange.
The portion reserved for high networth individuals, which saw relatively little or no demand on the first two days, showed a sudden surge in demand and was subscribed more than 159 times by the end of bidding.
The offer received strong demand from the institutional investor category as well, which was subscribed 48.64 times.
The retail investor category which was the most active on the first two days of the IPO, was subscribed 6.18 times at the end of day three.
The Rs 1,243 crore IPO of Asia’s oldest bourse was priced at Rs 805-806 per equity share of Rs 2 face value each. The exchange had allotted about 46.28 lakh equity shares at the upper end of the price band, aggregating to Rs 373 crore to 25 anchor investors on January 20, 2017.
The BSE will be listed on Singapore Exchange Ltd. and domestic rival NSE Ltd., which itself filed draft prospectus for a Rs 10,000 crore IPO in December 2016.
Financial services company BNP Paribas had allotted the BSE IPO a 'subscribe' rating as its integrated business model and diverse revenue mix was expected to unlock value for investors.
Its revenue mix is diversified and is not wholly dependent on market volumes. Notably, BSE can unlock huge value for its stakeholders as most of its subsidiaries (ICCL, CDSL, BIL etc.) are profit making.BNP Paribas Report
Edelweiss Financial Services Ltd., Axis Capital Ltd., Jefferies India, Nomura Financial Advisory and Securities (India) Pvt, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals were the lead managers for the share sale.