BoB’s proposed stake sale puts spotlight on NSE valuation
时间:2024-06-26 07:39:57 阅读(143)
A proposed stake sale by a public sector bank on Monday has put the spotlight on the valuations of the National Stock Exchange of India (NSE), the country’s largest bourse.
State-run Bank of Baroda (BoB)‘s proposed auction to sell 2.1 million shares, or a 0.42% stake, at a floor price of Rs 3,150 per share pegs the bourse’s value at about Rs 1.57 trillion ($19.2 billion). This is a 16-19% discount to the price of Rs 3,650-3,750 that was being quoted in late 2021, which translated to a valuation of roughly Rs 1.87 trillion ($25 billion).
The bourse’s valuations have somewhat been impacted after a probe in the co-location matter led to the finding that its former chief Chitra Ramakrishna had shared confidential data with a mysterious yogi based in the Himalayas.
NSE shareholders have been pushing the exchange to go public since 2015. The exchange had filed for its IPO in December 2016, but was asked to withdraw its offer documents pending investigations into the co-location scam, which led to higher scrutiny by the regulators. In FY21, the exchange approached the market regulator for a nod to its IPO plan, which did not elicit a response.
Earlier this year, the Securities Appellate Tribunal set aside the market regulator’s Rs 624-crore disgorgement order against the NSE. Subsequently, the Supreme Court, by way of a partial relief to the NSE in the co-location matter, directed Sebi to refund Rs 300 crore to the NSE. The amount was deposited by the NSE as per the disgorgement order.
Several marquee investors have been offloading their stake in the exchange after a prolonged wait for an IPO. Citigroup, Goldman Sachs and Norwest Venture Partners, for instance, sold their entire stake in the exchange in FY22.
BoB is the latest to join the bandwagon and has invited bids from insurers, mutual funds, foreign institutional investors, corporates, banks, public sector units, non-resident Indians, and high net worth individuals for the stake sale. This will fetch the bank Rs 661.5 crore.
The last date to submit the offer is July 10, while pre-bid queries will be between June 5 and June 15. The bids will be opened on Sunday.
NSE’s shareholding is a lot more diffused at present. The number of shareholders has grown from under 100 to over 4,300 in the past six years, with several high net worth individuals and family offices lapping up the shares. The percentage of individual holding has risen to 10.7% as of March 31, 2023, from 1.16% seven years ago.
Over seven million shares of the NSE changed hands in March at an average price of Rs 2,947 per share. Close to 1.51 million shares changed hands between domestic investors.
The NSE posted a consolidated net profit of Rs 2,067 crore for Q4FY23, up 31% YoY from Rs 1,580 crore. NSE’s consolidated net profit after tax for 2022-23 stood at Rs 7,356 crore versus Rs 5,198 crore in FY22. Income from operations stood at Rs 11,856 crore in FY23, compared with Rs 8,313 crore in FY22. Total revenue on a consolidated basis stood at Rs 12,765 crore, up 44% YoY.
上一篇:SEBI files FIR in cyber security incident, no sensitive data lost
下一篇:ZED scheme- Financial support extended to MSMEs crosses Rs 100 crore
猜你喜欢
- Sebi eases annual report dispatch rules for entities with listed non-convertible securities
- AMC”.
Also read: Petrol and Diesel Rate Today, 11 February: Fuel prices steady; Check rates in Delhi, Mumbai, other cities
In its consultation paper, Sebi has suggested that trustees of mutual funds should focus on market abuse by AMC, its employees and mis-selling by the AMC to increase the asset base.
Also, trustees should be responsible for fairness of fees and expenses charged by the AMC, compare its performance with peers and ensure that AMC’s sponsor is not getting any undue advantage.
In addition to the core areas, the trustees should be responsible for periodically reviewing the steps taken by AMCs for the folios which do not contain all KYC attributes with bank details.
Further, Sebi has suggested that trustees and their resource persons should independently evaluate the extent of compliance by AMC and not merely rely on AMC’s assurances.
To facilitate trustees’ supervision, AMCs should provide them with analytical information.
Presently, the trustees primarily rely on the AMCs for ensuring compliance with the applicable rules.
Under the rules, trustees hold the property of the mutual fund in trust for the benefit of the unitholders. The trustees appoint an AMC to float schemes for the mutual fund and manage the funds mobilised under various schemes, in accordance with the investment objectives.
“In view of the increasing scale and reach of the mutual fund industry, trustees’ role in respect of unitholders’ protection assumes even greater significance,” Sebi said on Friday.
Also read: Adani shares continue fall amid MSCI review
Over the past decade there has been a five-fold increase in the size of the mutual fund industry. The assets under management (AUM) has surged from Rs 7.93 lakh crore in November 2012 to Rs 39.89 lakh crore in December 2022.
To ensure that trustees devote time and attention to their core responsibilities, Sebi has suggested that for fulfilling other responsibilities, trustees may rely on professional firms such as audit firms, legal firms, merchant bankers for carrying out due diligence on their behalf.
The Sebi also listed some duties trustees can delegate to AMCs. This include ensuring that all systems are in place prior to the launch of any scheme by the AMC, and calculating any income in the mutual fund due to the fund and any income received in the mutual fund for unitholders.
The regulator has proposed to provide a one year time to existing trustees with board of trustee structure to convert into a trustee company, from governance point of view.
Presently, two structures for trustees are permitted — corporate and board of trustees structure. Moreover, there are a few mutual funds which have the board of trustees structure while the trustees of all other mutual funds have adopted the structure of a trustee company.
Considering the enhanced role of trustees over the period of time, Sebi has suggested to increase the minimum number of trustees to adequately perform their functions. Presently, the minimum number of trustees prescribed is four.
Also, it has been proposed that the chairperson of the trustee company should be an independent director.
Sebi has suggested that apart from the meeting of the audit committee of AMCs and trustees (which mostly comprises of independent directors), the board of AMCs and the board of trustees may be mandated to meet at least once a year to discuss the issues concerning the mutual funds.
The regulator proposed that the existing MF Regulations on AMC and its obligations may be amended to include additional clauses with respect to the obligations of the board of AMC.
The proposed amendment may include a clause which casts an obligation on the board of AMC to ensure that all the activities of the asset management company are in accordance with the provisions of these regulations.
The Securities and Exchange Board of India (Sebi) has sought comments from public till February 24 on these proposals.
- Sebi issues Rs 5
- Sebi amends ICDR regulations to provide 18-month window for pre-filed IPOs
- Is it fair to compare Mutual Funds and Portfolio Management Services-
- F&O expiry 13 Oct- Nifty support at 17000-17200, use intraday declines to add bullish bets in Bank Nifty
- ITC share price outlook- Check brokerage calls and target prices; cigarette volumes improving, FMCG growing
- Sebi amends rules; enhances disclosure requirements for certain FPIs
- Sebi issues Rs 2