BSE is reportedly in talks with New York Stock Exchange (NYSE) for roping in the latter as a partner in the country's leading stock exchange.
The move could lead to a sharp rise in listed companies in India and a better access to modern trading processes. According to sources close to the negotiations, a team from NYSE was recently in the city for talks with the BSE top brass. The meeting took place after the BSE held its first annual general meeting on September 26.
The exchange has appointed Kotak Mahindra as financial advisor for the strategic sale.
As part of the demutualisation (corporatisation) programme, BSE plans to bring down member brokers’ equity stake from the current 100 per cent to 49 per cent, by selling 26 per cent to a strategic partner. The exchange also plans to sell another 25 per cent to the public through an initial public offering.
The BSE earned a net profit of Rs 93 crore on a total income of Rs 220 crore in the year ended March ’06. On a small equity of Rs 68 lakh (representing as many shares of Re 1 each), the earning per share (EPS) works out to Rs 137. Even at a conservative discounting rate of 10 times, against sensex’s current price earning of 21, BSE shares could be valued at Rs 1,300-1,400.
No comments:
Post a Comment