Vadodara Stock Exchange plans Rs 25 crore public offer

If things fructify, this could well be the the first regional exchange to come up with an IPO.

The exchange currently has 14.5 lakh shares of Rs 10 each and will issue fresh shares for the public offering. "The issue size will be Rs 25 crore or more.

The proceeds of it will be used for purchasing new softwares for online trading, building renovation, security arrangements and to expand the business of depository participants. Also we aim to start commodity trading on MCX platform after getting a nod from SEBI," Sudhir Shah, Chairman, VSE told Business Standard.

Although the issue size and number of shares is yet to be determined, the local brokers are expecting that the price would be in the range of Rs 280 per share. The exchange is aiming to list its stocks at both BSE and NSE.

"All documents of the issue, which have to be submitted to market regulator SEBI for approval are being prepared and we are waiting for an appropriate time.

Given the existing market conditions, it doesn't make good business sense to come out with an IPO. We will have to wait for another six months. A valuation agency for conducting the valuation VSE assets and the lead managers for the IPO are yet to be appointed," said Shah.

It is learnt that VSE is expected to use the fund raised from the issue for expansion of its business. "After demutulization, many shareholder directors has been appointed on VSE's board like other regional stock exchanges, who are representing those companies which invested in the stocks of VSE.

VSE plans to list its stocks at BSE and NSE. All details including issue size will be finalised within next two-three months," Shah added.

As of now, total 29 investors including Financial Technologies Ltd., Amod Stamping, Lisa Finvest, Bluemark mercantile Ltd, VIEL Insurance Services Pvt. Ltd. and Pratham Investment, hold 53 per cent stake in VSE.

VSE is not planning a small issue as the purpose of the exchange is to provide liquidity to its shareholders and the expansion programs of the exchange are limited.