BSE draws up future business plan
BSE might tap the capital market to raise resources as part of its business plan for future growth.business Updated: Jun 22, 2007 17:38 IST
Soon after completing divestment of 51 per cent for demutualisation, The Bombay Stock Exchange (BSE) might tap the capital market to raise resources as part of its business plan for future growth.
"We will examine the possibility of entering the capital market if we require funds for our future business plans," BSE managing director & CEO Rajnikant Patel told reporters in Kolkata on Friday.
Patel was in Kolkata to attend a national seminar on integrated risk management.
Since BSE has already been corporatised, there was no hindrance to hit the market. Patel said the business plan for future growth is currently in the planning stage while declining to disclose the details.
He also refused to divulge whether the bourse was looking at an overseas foray or taking a stake in overseas exchanges as part of the business plan.
BSE has a cash reserve of Rs 1,000 crore and is a debt- free exchange. BSE has recently made private placement of a few overseas investors to meet the 51 per cent dilution of its stake to complete the demutualisation process.
Speaking about the Calcutta Stock Exchange, Patel said the bourse has shown interest in the local exchange. Patel will meet CSE officials to carry forward the negotiations.
CSE has decided to form a negotiating sub-committee to discuss on divestment which would be responsible to finalise investors and valuation at which the divestment would be made.