BSE gets good response for its OFS

Shareholders were given option of offering their shares, which were held for a continuous period of one year prior to filing of the draft prospectus with Sebi

BSE has received a good response for its offer for sale (OFS), with shareholders tendering a little less than 30 per cent of the exchange's total equity share capital during the tender process, said sources. The exchange is likely to file its draft prospectus by mid-September.

The issue size is expected to be close to Rs 1,200 crore, based on the percentage of shares tendered and assuming a share price of Rs 400 apiece.

Shareholders had to give a consent form, a notarised power of attorney and deposit their shares in an escrow account by August 22 for the OFS. BSE had earlier said that it would offload up to 30 per cent stake before end-March 2017 through an OFS, along with a possible fresh sale of shares. The exchange will not be required to issue fresh shares now as it has managed to dilute more than 10 per cent of equity through the OFS, as mandated by current regulations.

Shareholders were given the option of offering all or part of their shares in the offer, provided the shares were held for a continuous period of one year prior to filing of the draft prospectus with Sebi.

Shares not sold in the OFS shall be locked-in for a year from the date of allotment/transfer of shares in IPO, the exchange had said in a note to shareholders on July 5. Venture capital funds, category-1 alternative investment funds or foreign venture capital investors registered with Sebi will be exempt. Those taking part in the OFS will not be able to participate in the IPO as investors.

Earlier this year, BSE had told Sebi it had met the requirements of the amended regulations on the Stock Exchanges and Clearing Corporations (SECC) rule, and was in a position to proceed with its IPO. The exchange had first approached Sebi with a listing plan in January 2013 but could not get the required in-principle approval, owing to a lack of clarity on SECC norms. In 2012, it had appointed 14 investment bankers to handle the IPO.