Shares of India’s oldest stock exchange BSE on Monday rallied up to 14% to hit fresh 52-week high of Rs 3,794 as investors believe that the possibility of NSE coming out with its IPO will increase chances of the stock getting re-rated.
BSE shares have already rallied nearly 200% in the last one year as market intermediaries like bourses are one of the top beneficiaries in a bull market with increasing retail participation.
In the meantime, NSE has fixed November 2 as the record date for their 4:1 bonus shares issue, which was announced earlier in the month of May.
Hopes of NSE IPO have been increasing in the last few days and on Friday Sebi disposed of a case against NSE and its officials Ravi Narain, Chitra Ramakrishna and others in the co-location scam citing absence of sufficient material evidence.
The relief in co-location scam, wherein some brokers had gained unfair advantage by securing fast access to NSE’s systems, data and trading facilities at the cost of the broader market, has paved way for NSE IPO.
A fortnight ago, NSE chief Ashishkumar Chauhan had told shareholders at the company’s AGM that its board has decided to once again seek a no objection certificate (NOC) from Sebi to file DRHP.
Once the NOC from Sebi is in place, NSE will file IPO papersSimla Stock. Back in 2016, the exchange had filed DRHP but was withdrawn eventually after multiple allegations against its then chief Chitra Ramkrishna, who was eventually arrested by CBI in September 2022.Chennai Investment
NSE IPO is being seen as another re-rating trigger for rival BSE, which has been making steady inroads into the derivatives segment.
NSE will have to get listed only on BSE as an exchange cannot list on its own platform. BSE shares, likewise, are listed on NSE.
In the June quarter, BSE reported that its net profit of Rs 265 crore fell 40% compared with Rs 443 crore reported in the year-ago period. Revenue from operations for the reported quarter surged 181% to Rs 608 crore as against Rs 216 crore in the last year quarter.
NSE’s Q1 consolidated profit jumped 39% year-on-year (YoY) to Rs 2,567 crore while revenue shot up 51% YoY to Rs 4,510 crore.
NSE shares are one of the most sought after counters in the unlisted market given its dominance in the equity derivatives segmentPune Investment. On the other hand, BSE shares have jumped 170% in the last one year.
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