BSE starts screening of I-bankers to run its Rs 800-1,000 crore IPO

MUMBAI: Asia's oldest exchange BSE has begun the screening process for appointing merchant bankers to manage its Rs 800-1,000 crore initial public offering, tentatively scheduled to hit the markets in mid-2013. The exchange officials have already met six to seven merchant bankers over the past two weeks, said a source in the merchant banking circles.

"We're meeting merchant bankers for the issue. Details like size of the IPO and the timing would only be decided after the selection of the merchant banker," said Ashishkumar Chauhan, chief executive officer, BSE.

According to sources, BSE shares could be listed on either NSE or MCX-SX, which is yet to commence its equity trading segment. A stock exchange is allowed to list on any recognised stock exchange other than itself and its associated stock exchanges.

Market regulator Sebi had notified new rules for ownership and governance of stock exchanges in June this year, which also included a clause on listing of bourses.

It is not the need for additional capital that is prompting BSE to list itself on the bourses. The exchange has opted for the public issue to give an exit to existing shareholders, who hold over 41% in the exchange.

BSE recorded a net profit of Rs 178 crore on a turnover of Rs 578 crore in FY12.

At present, commodity bourse MCX, the co-promoter of MCX-SX, is the country's only listed exchange.