BSE IPO in the price band of Rs 805 - 806 opens for subscription. Valuation is little bit stretched. But there will be listing gains. Invest.
ISSUE DETAILS:
Issue opens / closes on
|
23-01 /25-01-2017
|
Promoters
|
Professionally managed
|
Business
|
Stock exchange
|
ISSUE SIZE
|
OFS of 15,427,197 EQUITY SHARES
|
FACE VALUE
|
Rs 2
|
PRICE BAND
|
Rs 805-806
|
LISTINGS
|
Bse, Nse
|
BRLMs
|
Edelweiss, Axis Capital, Jefferies,Nomura, Motilal Oswal,SBI caps, SMC capital
|
REGISTRAR
|
Karvy
|
Strengths :
a) Strong brand recognition with a track record of innovation.
b) Diversified and integrated business model and active relationship with market participants.
c) State-of-the-art infrastructure and technology.
d) Financial strength and diversified sources of revenue.
Risks:
1. Highly regulated - exchanges are highly regulated to protect the interest of retail investors.
2. Conflicts of interest. Valuation creation for shareholders at whose cost?
3. Competition- Faces stiff competition from NSE / others.
Financials:
(Rs in crores)
|
30-09-2016
|
31-03-2016
|
31-03-2015
|
Capital
|
10.74
|
10.74
|
10.74
|
Revenue
|
274
|
516
|
439
|
Net profit
|
86.1
|
131.9
|
75.6
|
EPS
|
15.79
|
24.16
|
13.86
|
Average RNOW in the last 3 years is 5%.
Valuation and recommendations:
BSE is one of the oldest exchange in Asia. First stock exchange to be listed. The offer is made at 27 PE, on FY earnings. Though valuation little bit stretched, there will be listing gains.
Invest for listing gains.