Confident Chauhan talks about BSE's multiple revenue resources

A week before the oldest stock exchange of the country, the Bombay Stock Exchange (BSE) launches its Initial Public Offering (IPO), its chief executive, Ashish Chauhan said his bourse's business model is just not dependant on mere one or two sources of income but also several others including earnings from mutual funds, debt instruments and also ETF distribution. Addressing mediapersons on Tuesday, Chauhan also talked about revenue generation angle from newly launched international exchange in the state capital of Gujarat.

BSE has set the indicative price band for its initial public offering (IPO) at Rs 805-806 per share. Asia’s oldest stock exchange owners’ IPO is set for January 23-25 and it will see some of BSE’s shareholders selling a total of 1.54 crore shares and will value the stock exchange at Rs 4400 crore at the top end of the price range. The IPO size at the top end of the price range is estimated to be at Rs 1243.43 crore.

On financial front, BSE’s total assets has increased 1.7 per cent CAGR in last five financial years ending with FY16. The merchant bankers have decided market lot for BSE IPO as 18 shares. The shares of BSE will be listed on NSE and will start trading from February 3, 2017. Interestingly, BSE's arch-rival NSE is also coming up with IPO and soon the vital dates are going to be announced, as per market sources. NSE will, however, be listed in the BSE as per cross-listing formula worked by the market watchdog to ensure transparency and protection of shareholder' interests. 

There are about 267 shareholders divesting their stakes from the bourse through the offering. The major shareholders include Singapore Exchange and investment firm Acacia Banyan Partners, GKFF Ventures, Quantum (M), Caldwell India Holdings Inc, Atticus Mauritius, Bajaj Holdings and Investment.