Deutsche may buy 5% in DSE
German multinational bank, Deutsche Bank, is likely to buy a 5% stake in the Delhi Stock Exchange (DSE).
By Aman Dhall & Dheeraj Tiwari, TNN |
NEW DELHI: German multinational bank, Deutsche Bank, is likely to buy a 5% stake in the Delhi Stock Exchange (DSE). If the deal happens, this would be the fourth major foreign investment in DSE after US-based Lamb Company, New Vernon Private Equity and Passport Global Master Fund SPC (British Virgin Islands) picked up stakes in the stock exchange.
���It���s just getting bigger. The announcement will probably be made before the end of this month. Deutsche Bank will buy 5% stake in the exchange,��� a senior DSE official told ET. At present, the foreign stake in the DSE is around 15%. Recently, the Bombay Stock Exchange sold 5% of its stake to European exchange operator, Deutsche Boerse, for Rs 189 crore at a price of Rs 5,200 per share.
When ET contacted Deutsche Bank, the German major refused to divulge any details. It said as a company policy, it didn���t comment on corporate developments. However, a senior company official confirmed that the bank is in talks with various stock exchanges and DSE is very much on their radar.
The DSE got de-mutualised in August 2007 and has around 2,800 companies listed on the exchange with 1,800 companies trading exclusively on it.
Earlier, the Foreign Investment Promotion Board (FIPB) had approved four foreign investors ��� Wilmette Holdings, Mauritius, Noor Financial Investment Company, Kuwait, Ikarus Industrial Petroleum Company, Kuwait and Kuwait Privatisation Projects Holding Company, Kuwait to pick 5% stake in the DSE, but the deal didn���t work out. DSE executive director Harjit Singh Sidhu declined to comment on the developments.
After the government announced that it will allow up to 49% foreign stake (including both FII and FDI) in Indian exchanges, a list of foreign companies have bought stake in Indian stock exchanges. The latest expression of interest came from Nasdaq, the largest electronic equity securities trading market in the US, to partner with Ahmedabad Stock Exchange (ASE).
Earlier this year, NYSE Euronext bought 5% stake in the Multi Commodity Exchange (MCX) for $55 million. The government has, however, capped foreign ownership for a single investor in commodities exchanges at 5%.
At DSE, foreign stake holders hold 15% stake and 36% stake is with private investors such as Parsvnath, Omaxe, BCCL and NDTV. Analyst believe that investment from foreign partners will add value and help regional exchanges acquire advanced technology.
���It���s just getting bigger. The announcement will probably be made before the end of this month. Deutsche Bank will buy 5% stake in the exchange,��� a senior DSE official told ET. At present, the foreign stake in the DSE is around 15%. Recently, the Bombay Stock Exchange sold 5% of its stake to European exchange operator, Deutsche Boerse, for Rs 189 crore at a price of Rs 5,200 per share.
When ET contacted Deutsche Bank, the German major refused to divulge any details. It said as a company policy, it didn���t comment on corporate developments. However, a senior company official confirmed that the bank is in talks with various stock exchanges and DSE is very much on their radar.
The DSE got de-mutualised in August 2007 and has around 2,800 companies listed on the exchange with 1,800 companies trading exclusively on it.
Earlier, the Foreign Investment Promotion Board (FIPB) had approved four foreign investors ��� Wilmette Holdings, Mauritius, Noor Financial Investment Company, Kuwait, Ikarus Industrial Petroleum Company, Kuwait and Kuwait Privatisation Projects Holding Company, Kuwait to pick 5% stake in the DSE, but the deal didn���t work out. DSE executive director Harjit Singh Sidhu declined to comment on the developments.
After the government announced that it will allow up to 49% foreign stake (including both FII and FDI) in Indian exchanges, a list of foreign companies have bought stake in Indian stock exchanges. The latest expression of interest came from Nasdaq, the largest electronic equity securities trading market in the US, to partner with Ahmedabad Stock Exchange (ASE).
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Earlier this year, NYSE Euronext bought 5% stake in the Multi Commodity Exchange (MCX) for $55 million. The government has, however, capped foreign ownership for a single investor in commodities exchanges at 5%.
At DSE, foreign stake holders hold 15% stake and 36% stake is with private investors such as Parsvnath, Omaxe, BCCL and NDTV. Analyst believe that investment from foreign partners will add value and help regional exchanges acquire advanced technology.
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