Aditya Birla PE Fund to pick up 0.5% in BSE

Aditya Birla Private Equity Fund, which is looking to raise Rs 1,250 crore, has finalised some investments, including 0.5 per cent in the country’s oldest exchange, the Bombay Stock Exchange, said sources close to the development.

The sources said the fund is likely to pay Rs 21 crore for the 0.5 per cent in BSE, thereby valuing the exchange at Rs 4,200 crore ($0.9 billion). When asked, the BSE spokesperson declined to comment.

According to analysts, BSE’s rival and the market leader, National Stock Exchange, has been valued at $2.5 billion. Financial Technologies-promoted MCX-SX, yet to start operations, has been valued at $1 bn, based on its sale of stake to IFCI.

At present, BSE has 21 strategic investors, including Deutsche Borse, Singapore Exchange, State Bank of India and Life Insurance Corporation of India, with stakes of five per cent each.

The stock exchange declared its quarterly results for the first time this August. It posted a marginal decline in its profit after tax (PAT) at Rs 57.27 crore in the quarter ended June, compared with Rs 57.97 crore in the corresponding quarter last year.

The exchange’s total income during the period stood at Rs 115.72 crore as against Rs 110.89 crore in the corresponding period of the previous year, up 4.36 per cent. The average daily turnover during the April-June quarter rose 9.4 per cent to Rs 6,298 crore from Rs 5,756 crore in the corresponding quarter last year.