India's BSE completes IPO
After months of preparations and regulatory negotiations, BSE completed its initial public offering on Feb. 3. The exchange, formerly known as the Bombay Stock Exchange, sold 15.42 million shares, which represents approximately 30% of its total equity, and raised 12.43 billion rupees ($182 million) in capital.
The selling shareholders included Singapore Exchange, which sold all of its 5.7% stake in the company, as well as George Soros’s Quantum Fund and Canadian investor Thomas Caldwell. Deutsche Boerse opted to retain its stake of just under 5%, however. The German exchange operator has a strategic partnership with BSE through its subsidiary Eurex that covers trading technology and product cross-listings.
National Stock Exchange of India, the country's largest market for both stocks and derivatives, is also close to going public. The exchange filed its prospectus with SEBI in December and plans to offer 22.5% of its shares. Several international banks and investor groups are looking to sell their stakes in NSE through the IPO. They include Citigroup Strategic Investments, Goldman Sachs, Temasek Holdings and Tiger Global Management.
In related news, SEBI amended its rules in January to allow greater foreign investment in Indian exchanges and clearinghouses. The new rules allow persons incorporated outside India to acquire or hold up to 15% of the equity share capital of an Indian exchange. Previously, foreign entities could hold only up to 5% in an exchange.
