Skip to main content

BSE shares get fizz back in grey market

Asia’s oldest bourse, BSE’s share price in the grey market (channels that are legal but unintended by the entity), has surged in the past few days as the exchange gradually moves towards an initial public offering (IPO) of equity. After being mostly steady in the past three months, the price has picked up momentum, gaining 10 per cent to Rs 355 in the past 10 days, after the bourse set up an escrow account to enable shareholders to tender shares in its Offer for Sale (OFS), said sources.

The shares have gained about 25 per cent in six months, posting a sharp spike after told the Securities and Exchange Board of India in a letter dated January 22 that it was fully compliant with regulations and ready to list for an IPO. In the past two years, BSE shares have zoomed more than two times in off-market trades, added sources.


“The shares are moving up in anticipation of a listing. The grey market is an illiquid market, as there are hardly any participants. The real price discovery will happen once the shares are actually listed,” said a broker, on condition of anonymity. BSE declined to comment for this report.

The price of Rs 355 is still lower than the Rs 375-380 that billionaire investor George Soros had paid in August 2011 for a four per cent stake in the exchange through his Quantum hedge fund. Sources said shareholders who want to participate in the ongoing OFS expect the shares to be priced at Rs 400 each. “We expect the off-market price to remain range-bound between Rs 350 and Rs 375. We saw good volumes at the price range of Rs 320-325 but volumes have tapered as prices crossed Rs 350,” said Rajan Shah, founder, 3A Capital Services, which deals in unquoted and unlisted shares.
BSE shares get fizz back in grey market
BSE has said it would offload 30 per cent stake before end-March 2017 through an OFS, along with a possible fresh sale of shares. Shares not sold in the OFS shall be locked-in for a year from the date of allotment/transfer of shares in the IPO. The sellers will receive the same sale price as the issue price for the IPO, net of expenses and applicable taxes. The exchange is likely to file its draft prospectus and select all its bankers by September. BSE has already appointed Edelweiss Financial Services as lead merchant banker, with AZB & Partners and Nishith Desai Associates as legal advisors.

The consolidated net profit for 2015-16 declined 38 per cent to Rs 96.7 crore, from Rs 155.5 crore the previous year. The exchange has seen a dip in cash market volumes, its mainstay, and less than 20 per cent of rival National Stock Exchange. Volumes in the derivatives segment have dived to almost nil, after the exchange trimmed its incentive structure for market makers.



Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Comments

Popular posts from this blog

TCS merger with TCS e serve

The board of Tata Consultancy Services (TCS) in its meeting on 18 October 2012 has approved the composite scheme of arrangement between TCS, TCS e-Serve (e-Serve) and TCS e-Serve International (TEIL). The composite scheme of arrangement provides for merger of e-Serve into TCS and demerger of TEIL's special economic zone (SEZ) undertaking(s) to TCS. The appointed date proposed for this scheme is 01 April 2013. TCS holds 96.26% of the paid up equity share capital of e-Serve. TEIL is a wholly owned subsidiary of e-Serve. As per the terms of the scheme of arrangement, shareholders of e-Serve (other than TCS) will receive 13 equity shares of Re 1 each of TCS for every 4 equity shares of Rs 10 each of e-Serve held by them. The board has approved the scheme of merger of Computational Research Laboratories (CRL) and Retail FullServe (RFL) with TCS. The proposed appointed date for the merger of CRL is 01 October 2012 and for the merger of RFL is 01 April 2012. Computational Res

Zomato, Swiggy score 1/10 on working conditions for their workers – ET Retail

Some of India's biggest startups have ranked near the bottom when it comes to  working conditions  for their gig  workers , according to a report released Wednesday. While  Swiggy ,  Zomato  and Uber India scored 1/10, Urban Company and Flipkart’s logistics arm EKart scored the highest 8/10 and 7/10, respectively, ‘ Fairwork India Ratings  2020: Labour Standards in the Platform Economy’  showed . The report assessed the companies on five principles: fair play, fair conditions, fair contracts, fair management, and fair representation. Deepinder Goyal, chief executive officer of Zomato Media Pvt. Ltd., acknowledged the ratings on Twitter. “Zomato ranked at the bottom of 2020 Fairwork India scores. We knew we had things to work on, but we didn’t know that there is so much room for improvement.” The company takes full responsibility and “will leave no stone unturned to perform better in the rankings next year,” he added. Zomato received a 4/10 in last year's report. According t

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p