BSE members agree to sell 41 per cent stake at Rs 5200 per share | business | Hindustan Times
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BSE members agree to sell 41 per cent stake at Rs 5200 per share

business Updated: Apr 12, 2007 22:21 IST
Bombay Stock Exchange

At an extraordinary general meeting of the Bombay Stock Exchange, member shareholders unanimously passed the resolution to place 41 per cent of BSE's shares with outside investors and also approved issue of additional shares that were placed with Singapore Stock Exchange and Deutsche Bourse.

BSE after its board meeting on Thursday announced that it has received an overwhelming interest from investors across the globe and India to purchase the 41 per cent shares. But BSE has not been able to fetch a higher price for members beyond the Rs 5200 base price fixed for brokers to tender their shares into an escrow account. That was the price paid by by Deutsche Bourse and Singapore Stock Exchange when they agreed to buy five per cent each in BSE.

"The entities to whom they are going to sell the 41 per cent stake was not mentioned but they have promised to obtain FIPB, SEBI and RBI approvals by the May 19 demutualisation deadline set by SEBI and disburse the issue process to the member shareholders," said a broker who attended the EGM, but does not wish to be quoted. "BSE has received interest from over 20 leading domestic financial institutions, foreign funds, domestic corporate houses and reputable high networth individuals," says the BSE media release.