Please study IPO Analysis given by Ms. Priyanka on 22nd Jan & Mr. Kabir in his post on 20th Jan.
GMP Report of 22.01.2017 ( at 06.00 pm ) : Rs. 122-124, Kostak is Rs.800 ,More Sellers
( Report on Past trend is given at the bottom of this page.)
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Issue Open:23 Jan. 2017
Issue Closes on : 25 Jan 2017
Issue Type: Book Built Issue IPO
Issue Size: 15,427,197 Equity Shares of Rs 2 aggregating up to Rs 1311 Cr
Offer for Sale of 15,427,197 Equity Shares of Rs 2 aggregating up to Rs 1311 Cr
Face Value: Rs 2 Per Equity Share
Issue Price: Rs.805-Rs.806 Per Equity Share
Market Lot:18 shares
Minimum Order Quantity:18 shares
Listing At: NSE ( Sebi rules do not allow self-listing for an exchange )
20th Jan – Anchor Investors
31st Jan – Finalisation of Basis of Allotment
01st Feb – Unblocking of ASBA
02nd Feb – Credit to Demat Accounts
03rd Feb – Listing on NSE ( 2 days after Union budget)
Chances are high that it will get budget`s positive impact
Asia’s oldest stock exchange BSE Ltd has received market regulator Sebi’s approval for its initial public offering (IPO).
The exchange had filed its DRHP in September.2016
Last week, BSE’s larger rival National Stock Exchange of India Ltd too filed its DRHP with the regulator. The BSE issue size is estimated to be Rs.1,200-1,300 crore.
Founded in 1875, BSE, whose first venue for broker meetings was under a banyan tree in India’s financial capital Mumbai, has long been considering an IPO. However, lack of clarity on rules for the listing of stock exchanges had delayed the process.
Offer for Sale:
Existing shareholders of Asia’s oldest bourse intend to sell 29.96 million shares through the offer for sale route. The issue represents 27.43% of BSE’s pre-share sale capital.
The DRHP listed 262 shareholders who have agreed to sell their shares. Singapore Exchange Ltd (SGX) will sell 5.09 million shares, or a 4.7% stake, making a complete exit.
Other shareholders who have offered to sell their shares include Atticus Mauritius Ltd, Mauritius investment arm Quantum (M) Ltd, GKFF Ventures, Acacia Banyan Partners Ltd, Canada-based investor Thomas Caldwell’s Caldwell India Holdings Inc., and Bajaj Holdings and Investment Ltd.
Individual shareholders, mainly brokers and trading members, hold 56.83% in BSE. The rest is held by institutional holders such as the Life Insurance Corporation of India, State Bank of India and Bajaj Holdings, besides the foreign bourses. In 2010, when billionaire financier George Soros bought a 3.9% stake in BSE for about Rs160 crore from Dubai Financial Group, the exchange was valued at around Rs4,000 crore.
Of the 107.35 million shares in BSE, trading members hold about 52.3 million shares, or 48.7 percent with the rest held by Deutsche Boerse AG, Singapore Exchange and a group of foreign portfolio investors, insurance firms and individuals.
Singapore Exchange plans to sell its entire stake in BSE in the IPO, the prospectus showed.
Business Potential for the Exchanges :Exchanges are expected to be an exciting new space for investors, Despite the sheer population of the country, the number of people participating in the capital markets is very low. This participation is only going to increase going ahead and that will boost the exchange business .The government too is keen on increasing the retail participation in capital markets, New products and innovations such as real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) will also help,
“The government’s focus on divestments is another positive for the exchange business as it will bring more retail investors to the table. With new products such as REITs/InvITs coming to the markets, the exchange business will grow further. Also, once the start-up platforms gain traction and new-age companies cone to the market, that too will be a positive for the business.
What is unique for BSE:
BSE, formerly known as the Bombay Stock Exchange, boasts the most listings in the world with more than 5,900 listed companies but it has been dwarfed by rival NSE in trading volumes, especially since the introduction of derivatives that have increased liquidity in large caps.
The BSE has got license to commence commodity business and plans to set up a Global Exchange at GIFT city in Gandhinagar. Around 300 members have consented to setup their offices at the new venue. This move will put BSE ahead of MCX`s market cap.
As the recent guidelines, the entities can increase their holding in an Exchange from 5% to 15% and accordingly Deutche Borse is expected to increase its holding to 15% through secondary market or this OFS. Deutche Borse had invested Rs. 189 crores by taking up 5% stake in BSE in 2007.
For the quarter to the end of June, BSE reported total income of 1.65 billion rupees ($24.7 million) and net profit of 527 million rupees.
BSE had reported a 40 percent increase in its consolidated net profit at Rs 52.72 crore for the first quarter to June 2016.
EPS for 2015-16 (on Rs. 2 FV) Rs. 24.2
EPS for Q1 ended on 30.6.2016, : Rs. 8.2
Book Value as on 31.3.2016 ( of FV Rs. 2 ) Rs. 448.60 on consolidated basis.
MCX:(only commodity business)
Book Value of MCX as on 31.3.2016 on FV of Rs. 10 shares : Rs. 236 and
CMP Rs. 1272 as on 05 Jan 2017.
MCX has earned EPS of Rs. 8.70 during 2015-16.
CMP of MCX indicate PE ratio of 146.20 on EPS of 2015-16.
Lead Managers :For the BSE IPO, Axis, Edelweiss, Jefferies and Nomura are the joint global coordinators, while Motilal Oswal, SBI Capital Markets, SMC Capitals and Spark Capital are among the other bookrunner.
Nishith Desai Associates is the legal advisor to the IPO while Karvy Computershare is the registrar.
Currently, Multi Commodity Exchange of India Ltd (MCX) is the only listed bourse in the country. MCX has market capitalisation of Rs. 5100 crores based on current CMP of its shares.
On 22.01.2017 ( at 06.00 pm ) : Rs. 122-124, Kostak is Rs.800
On 20.01.2017 ( at 06.00 pm ) : Rs. 124-125, Kostak is Rs.750 ,More Sellers
On 19.01.2017 ( at 06.00 pm ) : Rs. 128-130, Kostak is Rs.750
On 19.01.2017 ( at 11.00 pm ) : Rs. 128-130, Kostak is Rs.600
On 18.01.2017 ( at 06.00 pm ) : Rs. 128-130,
On 18.01.2017 ( at 11.00 am ) : Rs. 110-112, Kostak is Rs.600 ,
On17.01.2017 ( at 11.00 am ) : Rs. 103-108, Kostak is Rs.600 , volume has improved
On 16.01.2017 ( at 11.00 am ) : Rs. 108-110, Kostak is Rs.600
On 14.01.2017 ( at 11.00 am ) : Rs. 106-108, Kostak is Rs.600
on 13.01.2017 ( at 11.00 am ) : Rs. 96-100, Kostak is Rs. 550-600
On12.01.2017 ( at 11.00 am ) : Rs. 96-98, whereas at some of the centers of Saurastra, GMP is Rs. 94. Kostak is Rs. 600 .
On 11.01.2017 ( at 11.00 am ) : Rs. 94-96, whereas at some of the centers of Saurastra, GMP is Rs. 92. Kostak is Rs. 550 .
On 10.01.2017 ( at 05.30 pm ) : Rs. 90-93, whereas at some of the centers of Saurastra, GMP is Rs. 86. Kostak is Rs. 500 whereas at some centers , brokers quote Rs. 550
On 10.01.2017 ( at 10.50) : Rs. 85-87, whereas at some of the centers of Saurastra, GMP is Rs. 80. Kostak is Rs. 500 whereas at some centers , brokers quote Rs. 550.
Report of 09.01.2017 ( at 3.50) : In the morning , we had reported there is no trading in Grey market premium . However in the afternoon, there is SHUBH Sharuat !!!!
GMP is quoted at Rs. 80-82 whereas in some of the centers of Saurastra is Rs. 75. Kostak is Rs. 500 where as in some centers , brokers ask for Rs. 550.