BSE’s Market Cap Does Not Reflect Real Value Of Its Assets, Says CEO
“There’s an anomaly in BSE’s market capitalisation vis-à-vis... the real assets, valuable IPs and markets that are there.”
Asia’s oldest bourse said its market capitalisation does not reflect the real value of the assets and intellectual property it owns.
“There’s an anomaly in BSE’s market capitalisation vis-à-vis ... the real assets as well as the kind of valuable IPs and markets that are there,” Ashishkumar Chauhan, managing director and chief executive officer of BSE Ltd., said in an interaction with BloombergQuint, reiterating what he said in an interview earlier.
BSE, listed on the National Stock Exchange, is valued at Rs 5,543 crore as on Sept. 30. In comparison, the NSE is valued at close to Rs 1,40,000 crore based on trades in the over-the-counter market.
Citing the example of BSE Star Mutual Fund, Chauhan said if the platform, given the scale of its distribution, were a standalone company, "it would have been valued at very large amounts".
BSE Star MF, India’s largest regulated exchange-based online mutual fund distribution platform, processed a record 1.52 crore transactions in September worth Rs 35,242 crore. As many as 9.71 lakh new systematic investment plans were registered during the month.
The platform has achieved 7.8 crore transactions in the first six months of the ongoing fiscal—which is 83% of the 9.38 crore transactions it clocked in FY21. Its turnover jumped 45% year-on-year to Rs 1,09,836 crore in the quarter ended September.
The BSE has nearly Rs 1,500 crore in investments, cash and cash equivalents, and another Rs 1,510 crore in bank balances, according to its consolidated balance sheet. Its 20% stake in Central Depository Services Ltd. is valued at Rs 2,709 crore at the current market price. Together, that's more than Rs 5,700 crore. Or almost equivalent to its current market cap of Rs 5,571 crore as on Oct. 4.
In addition, the BSE has investments in IFSC-based India INX where it owns 79.78%, BSE Star MF platform, BSE SME platform, BSE Bond platform, where the bourse had more than 50% market share, according to its first-quarter presentation. It has also ventured into insurance broking through BSE Ebix Insurance Broking.
Watch the full interaction here: