business, india

BSE makes debut on NSE; raises Rs 1,243 crore

Shares of BSE made a strong debut on the stock exchange, closing 32.6 % higher at Rs 1,069.2 apiece. The issue price was Rs 806 a share.

About 15.7 million shares of BSE changed hands during the session.

BSE is the first Indian stock exchange to go public. The initial public offering (IPO) of BSE was subscribed over 50 times by institutional and retail investors.

Commenting on the Stellar debut, BSE CEO Ashish Chauhan told Business Standard, “We are basically in the business of compliance and that will remain our mainstay going forward.”

Market participants quoted by Business Standard said the moderate pricing of the IPO was the key reason behind its success. BSE issued shares at a price to earnings (P/E) multiple of 20.6 times its 2016-17 earnings.

Pricing played a very important role in the success of the IPO along with the reputation of BSE being a high-quality institution. We had kept the valuations at reasonable levels so that the new investors feel comfortable investing,”Axis Capital MD Salil Pitale was quoted by Business Standard as saying.

BSE has listed on the National Security Exchange (NSE). The Mumbai-based stock exchange raised Rs 1,243 crore through initial sale.

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