BSE soars in market debut after $185m IPO
Feb 4, 2017-
Shares of India’s second-biggest stock exchange, BSE Ltd, jumped as much as 49 percent on their market debut on Friday, after the exchange raised about $185 million in an initial public offering that had been heavily over-subscribed.
Asia’s oldest exchange is expected to benefit from a surge in retail investments into mutual funds as well as government efforts to steer more pension money into stocks. The government’s scrapping of old high-value banknotes, leading to a surge in bank deposits, has raised hopes some of these savings would be channelled into financial markets.
Investor demand for BSE’s stock was also strong due to its attractive valuations.
“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.”
Shares in BSE were trading at 1,110 rupees at 0630 GMT, having risen as much as 1,200 rupees on the National Stock Exchange, compared with their IPO issue price of 806 rupees apiece. BSE, which also offers clearing and data, reported a net profit of 760 million rupees ($11.3 million) in the quarter ended September, up 78 percent from a year earlier.
Published: 04-02-2017 08:51