Seven of the top 10 shareholders of Bombay Stock Exchange Ltd. (BSE) are paring their holdings in the forthcoming Initial Public Offer. The exchange disclosed this in its draft red herring prospectus filed with the Securities and Exchange Board of India (Sebi).
According to the prospectus, nearly 69.3 percent of the shares under offer for sale are owned by seven of the top 10 shareholders.
The BSE IPO will see Singapore Stock Exchange sell its entire 4.7 percent stake, while competitor Deutsche Boerse will continue to hold its 4.7 percent stake in the India’s oldest exchange.
Among the other shareholders, Atticus Mauritius Ltd. and Quantum (M) Ltd., each holding 3.7 percent stake in BSE, will also exit completely. Other investors also selling stakes include GKFF Ventures, Acacia Banyan Partners Ltd., Caldwell India Holdings Inc and Bajaj Holdings and Investments Ltd.
Domestic financial institutions have chosen not to exit via the IPO. State Bank of India and Life Insurance of India, each with a 4.7 percent stake, will continue to remain invested and will be the largest shareholders along with Deutsche Boerse’ after the IPO.
In the IPO, BSE’s shareholders will sell 2.99 crore shares through an offer for sale, and the exchange will list on rival NSE (National Stock Exchange). BSE will be the second stock exchange to list in India. Multi Commodity Exchange Ltd was the first listed stock exchange, it had received deemed stock exchange status post the merger of commodity market regulator, The Forward Market Commission (FMC) with SEBI.
The NSE is also preparing to file an IPO.