South Asian Insider
BSE creates history, stock lists at 34.61% premium on NSE
Asia's oldest bourse BSE listed on rival NSE at a record premium price on Friday. The IPO was subscribed 51 times at a price band of Rs 805-Rs 806 per share.
The exchange on which stocks of nearly 3,000 firms are traded got listed at a 34.61 per cent premium over its issue price of Rs 805 on the NSE.
The stock which listed at Rs 1,085 touched an intra-day high of Rs 1,200. Around 1.57 crore stocks of BSE were traded with total value of transactions recorded at Rs 1.75 crore.
The share sale is the largest in recent times and the first to be held this year. The stock commanded over 20 percent premium in the grey market on Thursday. At 12:32 hours, the BSE stock was trading 1.82 percent or 19.70 points higher at Rs 1104.70 level.
The stock closed 1.33 percent or 14.45 points lower on the NSE.
BSE CEO and MD Ashishkumar Chauhan said getting over 35 per cent premium listing for the stock is a pleasant surprise for us and the investors.
The exchange posted Rs 122 crore in FY 16 profit.
BSE, which also offers clearing and data, reported a net profit of Rs 76 crore ($11.3 million) in the quarter ended September, up 78 per cent from a year earlier.
The exchange had Rs 250 crore cash on its books as of September 30.
"They offer a full bouquet of products which is basically the fundamental strength of this exchange," said Deven Choksey, managing director at KR Choksey Shares and Securities.
"I think the way in which BSE has carved out its business model provides confidence to investors. Plus, they are profit making and have cash in the balance sheet."
The IPO which opened for subscription from January 23-25 received applications 51 times at a price band of Rs 805-806 per share. The Rs 1,243-crore IPO saw qualified institutional buyers' portion getting subscribed by 49 times and that of non-institutional investors by a spectacular 159 times.
During the initial share sale, shareholders offered 1.54 crore shares estimated to be worth around Rs 1,243.44 crore at the higher end of price band. The BSE IPO received a subscribe rating from investment advisor Equinomics.
Raj Kapoor’s priceless legacy is up for sale
When circumstances compel us to narrate tales of tragedy and mishap, even news developments can demoralise us or make us anxious. ...
Washington must address Indian concerns over the effects of its new sanctions on Iran and Russia
The US has emerged as India’s most important partner. The inaugural India-US two-plus-two ministerial dialogue will help highlight...
Trump wants to stop subsidies to India, China
Washington: US President Donald Trump on Friday said he wants to stop the subsidies that growing economies like India and China ha...
Manmohan Singh says Modi govt ‘failing on all fronts’
Former Prime Minister Manmohan Singh on Friday accused Prime Minister Narendra Modi and his government of failure on all fronts, s...
Pakistan’s Military Has Quietly Reached Out to India for Talks
ISLAMABAD, Pakistan — Concerned about Pakistan’s international isolation and faltering economy, the country’s powerful military ha...
Saudi Plan To Dig Canal Likely To Cut Off Qatar, Turn It Into Island
Riyadh: A Saudi official hinted Friday the kingdom was moving forward with a plan to dig a canal that would turn the neighbouring ...
Some In NDA Don't Want Narendra Modi As PM Again, Says Union Minister
Some people in the National Democratic Alliance or NDA did not want Narendra Modi to be the prime minister of the country again in...
Nitish Kumar Ready To Go It Alone In Bihar, Party Insists It's BJP's Loss
PATNA:The BJP has begun testing the waters on seat-sharing with allies in Bihar ahead of the 2019 parliamentary elections, claimin...
Kashmir tense as targeting families of policemen and militants has increased stakes and risks in strife-torn state
Sons and other close relatives of policemen have been abducted, while the father of a dreaded militant has been detained, over t...
Regionalism, not secularism, is the new pivot of Indian politics, writes Barkha Dutt
At a recent panel discussion to launch a book of essays by senior lawyer and Congress spokesperson, Abhishek Singhvi, I pushed the...
© All rights Reserved. The south Asian, Published Weekly from New york.