Source: R Balakrishnan
(Disclosure:I am market making in BSE)
The Bombay Stock Exchange plans to sell a part of its stake in Central Depository Services (India) Ltd through an initial public offer (IPO), three people with direct knowledge of the development said.
The exchange has to bring down its holding to comply with the Securities and Exchange Board of India’s norms on ownership in market infrastructure institutions.
The IPO will value the company at around Rs 700-750 crore, these people said.
“The boards of directors of BSE and CDSL have approved the proposed initial public offering plan,” an investment banker said.
BSE will now hire bankers to manage the issue and is looking at a listing by the end of the current financial year, people quoted earlier said.
As on April 30, CDSL managed 8,772,884 accounts with securities of Rs 11.28 lakh crore. Stocks and securities of around 14,738 companies are being managed by the depository.
BSE, Asia’s oldest exchange, holds 54.2% in CDSL and needs to trim it to below 24% to comply with Securities and Exchange Board of India’s norms on ownership and governance of market infrastructure institutions. –from ET