The National Stock Exchange (NSE) has announced a slew of measures, including dividend, stock split and bonus shares to reward its existing shareholders before it files the offer document for an initial public offering (IPO) by 2017. The NSE board also decided that the IPO would be an offer-for-sale of equity shares by its shareholders. NSE’s valuation is about Rs 18,000 crore, based on latest deals.
BSE, its rival and Asia’s oldest bourse, has already filed its draft prospectus with the market regulator for its Rs 1,200-crore plus IPO. It too has opted for the offer for sale route.
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In its board meeting on October 4, the NSE has declared an interim dividend of ₹79.5 for each share of face value ₹10 each for fiscal FY17, the payout of which would happen by October 31, 2016. The record date to determine the eligibility for payment of dividend was fixed as October 17.
The NSE board also decided to issue bonus shares in the proportion of 1:10, i.e., one bonus share would be issued for every 10 shares held.
The NSE also decided to split the face value of its shares to ₹1 each from ₹10 and decided that shareholders would receive 10 shares of ₹1 each for every share of ₹10 they held.
The NSE has an authorised capital of ₹50 crore (sub-divided into five crore shares of face value ₹10 each). Of this, ₹45 crore is fully paid-up. With the issuance of bonus shares its paid-up equity share capital would go up to 4.95 crore shares of ₹10 each.
At the end of June 2016, IFCI held 3.55 per cent stake in the company, Tiger Global Five Holdings and Norwest Venture Partners owned 3 and 2.11 per cent stake, respectively. In all, 17 foreign portfolio investors collectively held 9.29 per cent stake in the NSE while three venture capital funds had 3.76 per cent stake. Six insurance companies collectively hold 19.84 per cent stake in the exchange, of which LIC controls 12.51 per cent stake, GIC 1.64 per cent and National Insurance Co 1.42 per cent.
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