BSE may launch IPO by fourth quarter of this financial year

Leading stock exchange BSE may launch its initial public offer (IPO) by the fourth quarter of this financial year as it does not anticipate any major hurdles to the issue, sources said.

"Since we have filed, we have not yet received any communication seeking any clarification so far from Sebi. We do not anticipate any major hurdle and expect their approval over the next 60-70 days," sources involved in process told PTI.

BSE remained comfortable with Sebi's current regulation on listing, which does not allow self-listing and says cross-listing will only improve transparency.

Sources said once approval is received, market condition would be the driving factor for the actual IPO launch, without ruling out possibility of the share sale taking place in January-March.

Sources added sponsor shareholders will be the key decision makers on the matter as BSE is just a facilitator in the issue, which will be the country's first IPO for a stock exchange.

The entire IPO offering is sponsored by existing shareholders under Offer for Sale (OFS) category and BSE is not raising any fresh equity capital.

The 141-year-old exchange has about 9,000 shareholders. It received Sebi's in-principle approval in March this year.

Furthermore, subject to applicable law, the total size of the IPO shall be up to 30 per cent of the post-IPO issued equity share capital of the exchange. According to reports, issue size could be around Rs 1,200-1,300 crore.

Out of top 10 shareholders, many are diluting their stake. Singapore Stock Exchange is one of the shareholders which is completely divesting its stake.

Top shareholders include Deutsche Boerse AG, Singapore Exchange Limited, Caldwell India Holdings Inc, Atticus Mauritius Limited and Acacia Banyan Partners Limited, LIC, SBI and Bajaj Holdings.

Deutsche Boerse is not selling any stake in this offer, while BSE officials expect they will raise their shareholding in near future.