Abhishek Securities

Even before it goes public, the  shares  of BSE, the oldest bourse in Asia, are changing hands in off-market deals among rich or high net worth individuals (HNIs). “There’s a good deal of demand for the  shares  among HNIs, with investors anticipating ‘value unlocking’ for the untendered, unlisted  shares  in the run-up to the  IPO  (initial public offer),” said a person, who did not want to be identified. Trades not settled through the clearing corporation or clearing house of an exchange are classified as off-market trades. The route is frequently used by investors who wish to offload their holdings in unlisted stocks and the payment is settled privately between the parties. According to another person, the off-market transactions are being done close to Rs 385, the price currently quoting in the grey market. “The demand raises the chances of oversubscription for the IPO,” he said.   During the offer for sale in August, investors had t...

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  BSE  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 pri...

Ahead of its proposed initial public offering, Asia's oldest bourse  BSE today warned investors against unauthorised offers to purchase or deal in the shares of the exchange that are unlisted currently.  BSE is expected to file  IPO  papers with market  regulator  Sebi  next month to mop-up Rs 800 crore.  The exchange's initial share-sale programme may hit the market this financial year.  Warning investors against unauthorised offers, BSE said in a notice, "Certain persons and/or entities have been circulating communications soliciting offer to purchase/deal in the shares of the exchange while such shares are unlisted."  It further said, "Such communications have not been directly or indirectly solicited or prompted by the Exchange, nor does the exchange endorse communications of such nature in any manner whatsoever. Any offer or solicitation pursuant to such communications should be carefully evaluated with respect to their legality...

While several private equity-backed companies have sold shares to the public this year, several others that were expected to have deferred or abandoned their plans, denying exits to their private equity, or PE, investors. Warburg Pincus-backed ACB (India) Ltd; TPG and Actis-backed AGS Transact Technologies Ltd; Tano Capital-backed logistics firm Shree Shubham Logistics Ltd; Catholic Syrian Bank Ltd; Blackstone-backed Nuziveedu Seeds Ltd; and CX Partners-backed Matrix Cellular (International) Services Ltd have failed to access the primary market for share sale even after obtaining clearances from stock market regulator Securities and Exchange Board of India (Sebi) as far back as six months in some cases. This contrasts with the decent run some PE firms have had this year in terms of partial or complete exits through initial public offerings (IPOs) of portfolio companies. There have been about 10 IPOs this calendar year, which collectively raised  Rs. 6,743 crore, according to ...

  The primary market is slowly becoming more discerning about who it lets in, with investors not hesitating to turn their backs on companies they think don’t make the cut. Since 2011-12, of the 132 IPO applications approved by the Securities and Exchange Board of India (SEBI), 67 lapsed. In the three months from April to June this year, of the 13 companies that SEBI cleared to launch their IPOs, seven didn’t come to the market. This is much higher than in the whole of FY15, when four out of 16 IPOs failed to make it. A merchant banker, who did not wish to be quoted, said there is more “investor pushback now because they disagree about a company’s valuations or business fundamentals”. In some cases, the company fails to enthuse institutional investors during the roadshows and publicity programmes to attract investors. If institutions don’t show adequate interest, the IPO is mothballed before retail investors even hear about it. In other cases, the timing has gone w...

>Shares in the unlisted horizon are available at P/E ratio of 1 to 3 times , whereas a company from a similar industry and identical financials and quality of management is generally listed on the exchanges at a P/E of about 10 to 50 times. >As these shares are available at very modest valuation the investor stands to gain magnificent payouts when these shares are listed on the exchange in the next 1-2 years . >Another plus is that the dividend yield is fabulous . >Companies in the unlisted sectors generally have smaller equity base , so the net worth per share of the company is very high for the investor . >A very small percentage of the actually existing companies is actually listed . >A significant portion of the unlisted companies are over 50 year old and thus have real estates and assets at historical costs , the actual valuation of which is sometimes 1000 times the book value . >A comparision reveals that dividend and bonus payout in thes...

Country's premier stock exchange Bombay Stock Exchange ( BSE) today said it had set up a committee to process its proposed initial public offering (IPO). The exchange said that it may list during the next calendar year. Ashishkumar Chauhan, interim Chief Executive Officer, BSE Limited, said: “We are working on the process to get listed in the Indian stock exchanges. We have set up an IPO committee and we are in the process and we hope to get listed in the first or second quarter of calender year 2013." He said the exchange is in the process of preparing Draft Red herring prospectus (DRHP) and waiting for certain regulations to get listed, said Chauhan. “We are a cash-rich exchange and wants to give our investors an exit route and IPO would be best option for them,” he added. Currently broking houses hold around 43% in BSE, followed by FIIs with 39% and FIs and retail will hold the remaining in the exchange.  As per SEBI's rules, we need...