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.
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