( This post tries to bring out consolidated opinion, IPO Review, Analysis, Note/ reports and recommendation of brokerages , Analysts, Business New papers,
Management views, information on Anchor investors etc on BSE Limited IPO and shall be updated continuously till the closure of the issue The information collated from various sources and reports in public domain can  help investors to decide whether they should subscribe to BSE Limited IPO. )
Related Posts:

BSE Limited: IPO Review


BSE Ltd IPO: Comparison with Indian Peers


Check BSE IPO Allotment Status (after 31/1/17 only)  Click Here 
Allotment is Out. Aided by a good budget BSE  IPO Grey Market rates are just a tad short of touching Rs. 200/- 

Check BSE IPO Application Status  Click Here 

Expected Dates : BSE IPO

23/01/17 – IPO Opens
23/01/17 – IPO Closes
31/01/17 – Possible Allotment Finalization
02/02/17 – Credit to Demat Accounts
03/02/17 – Listing on Bourses

Subscription: BSE Ltd. IPO  ( x times)
  QIB NII Retail Total
Day 3  48.64  159.03  6.48  59.22
Day 2   .21  .57  2.73  1.55
Day 1 0.17 0.12 0.86 0.5

Anchor Investors:  

Anchor book has been oversubscribed about 7x
BSE has allotted a total of 46.28 lakh equity shares at Rs. 806 per share totaling Rs. 373 crore to a host of domestic and foreign institutional investors.  Some of the marque investors who are part of the anchor allocation are Massachussets Institute of Technology, Capital World, Goldman Sachs Asset Management, The Washington University, Citigroup Global Markets Mauritius, Kuwait Investment Authority Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, DSP Blackrock Alternative Investment Fund and Kotak Mutual Fund, among others.
Complete Anchor List Click Here

Views of Brokerages, Analysts,  Business New Papers, Management views  

Deepak Shenoy, Founder, Capital Mind: “
BSE’s growth statistics have dipped substantially and NSE has taken a considerably higher market share. From a growth story perspective, BSE is not such a great play. However, it may be a dividend play in the near term” 

Vikas Khemani of Edelweiss Securities: “BSE definitely has growth drivers, but some of the concerns over its business are real. “It is difficult to believe that Indian capital market will grow, but BSE will not grow. I think some of those concerns are there for sure. Even though growth drivers are there, but we still have to wait and watch”

Nirmal Bang: “Though BSE was the first stock exchange in Asia, incorporated in 1875 but remain much behind NSE and had market share of 15% in cash segment (as on FY16) and negligible presence in Derivative segments. Due to lagging behind in adoption of derivative, BSE lost its dominant position to NSE even in Cash segment as well. Now BSE is trying to strike first in many of the newer product like Currency Derivative, MF, Debt Market, International Exchange etc. We feel success of any of the activity can bring growth for BSE. Anyhow BSE is still second largest exchange in volume term and world’s largest exchange by number of listed companies. We feel With Market Cap of Rs. 4,326 Cr at upper end of price band and Free cash of Rs. 2,681 Cr, the Enterprise value of Rs. 1,646 Cr is attractively priced considering the optional value of success of any new initiative.”

Prabhudas Lilladher: “
BSE’s EBITDA margins of +40% remain best in class on back of steady revenue momentum and better management of treasury. Even excluding the investment income EBITDA margins are at 22% in H1FY17. It also has been gracious in dividend payout which stands at 80% of profits. BSE derives most of value in its investments made in subsidiaries like CDSL, IIEL among others. BSE on consolidated basis at upper band of issue prices trades at 35x FY16 EPS, 23x CEPS & 1.8x BV which is fairly valued in our view and hence recommend to Subscribe for long term gains.”

KR Choksey: “While the valuation appears to be pricey, we suggest investors to subscribe for the long term owing to new product innovation and development, expected rise in equity savings as a percentage of financial savings, enhancement in its brand profile by setting up a International exchange which will also provide them with additional sources of revenue.

Livemint: Analysts from Brokerage Houses like IIFL, Anand Rathi, Angel Broking are positive on the BSE Ltd. IPO and have a subscribe Rating while Ravi Sundar Muthukrishnan, co-head of research at ICICI Securities has a neutral view on the IPO. For reading  detailed Article Click Here

Angel Broking:
“While BSE has not been able to gain market share from its competitor it has also not lost market share in the last five-six years in the Equity cash segment. Its holding in CDSL and Clearing Corporation will continue to be value accretive in the long run. CDSL had a PAT of `63cr for FY16 and being specialized institutions it should attract a premium valuation. LIC had bought a 4.15% stake in 2015 in CDSL valuing the company at ~ `800cr. Similarly Indian Clearing Corporation had a PAT of `48cr for FY16 and if we apply similar valuations to it, it would be valued at ~`600-700 cr. Considering BSE’s stake in CDSL at 50.05% and in ICCL at 100% we believe the, entire market cap of BSE at the issue price seems reasonably priced. At the issue price the stock is offered at 20.6x its FY17 annualized EPS. Looking at the business model, we believe the issue is reasonably priced and hence recommend SUBSRIBE to the issue. “

Hindu Business LIne
: “BSE IPO: Makes sense; In the first six months of 2016-17, BSE has grown its revenue by 26.6 per cent compared with the same period last year. This is thanks to increase in transaction charges for illiquid scrips and increase in income from depository services of CDSL. Profit margin at the operating level increased to 50.4 per cent from 45.7 per cent. Margin at the net level was also higher as the liquidity enhancement programme was discontinued from April 1. Profitability may improve in the coming year, as SEBI has exempted stock exchanges from transferring 25 per cent of profits to the Settlement Guarantee Fund (SGF) of clearing corporations.”  Article Click Here 

Dalal Street Investment Journal: “The bourse has shown subdued performance of 3 per cent CAGR growth over FY12-16. The exchange lags in financial performances as it operates at 53 per cent and 20 per cent EBITDA and PAT margins, respectively, as compared to its peer NSE’s 74 per cent and 49 per cent margins, respectively. On the valuation front, considering upper band of Rs 806 the stock is available at P/E of 26.55x on FY17E earnings. Considering past subdued performance and comparatively lower margins, investing for long term may not bear fruits though one can definitely look at this IPO for some quick listing gains. “

Geojit BNP Paribas: “Overall financial performance remained healthy with revenue registering a CAGR of 7% over FY13-16. Since FY14, overall revenues have picked up due to hike in listing fees in two successive years. Interestingly, revenues from listing fees have grown at a stellar CAGR of 65% over FY14-16. Given the under-penetrated Indian financial markets, we are upbeat on the stock owing to its diversified revenue mix & continuous focus on introduction of new products & services. At upper price band of Rs806, it is available at 25.6x FY16 PE, which we believe is reasonably priced when compared to globally listed exchanges like Singapore Exchange, Japan Exchange Group, Deutsche Boerse, which are trading in the range of 20-25x FY16 PE. We recommend “Subscribe” to the issue, with a medium-to-long term perspective. Purpose”

ICICI Direct: “Priced at ~35x FY16 PE; SUBSCRIBE from long term investment horizon At the IPO price band of | 805-806, the stock is available at a multiple of 35.2x FY16 P/E at the upper end of the price band. Post issue market capitalisation is at ~ 4312 crore.”

GEPL Capital: “BSE Ltd.(BSE) stands to gain from operating leverage. At a P/E of 35.8 xs of FY16 EPS and 21xs of trailing earnings. We believe that BSE Ltd. demand a discount to its domestic peers. We assign a Subscribe rating to the IPO.” 

SPA Financial Advisors: “At the upper end of the price band, the stock is available at P/E of 28x based on annualized FY17E earnings. It’s nearest comparable MCX is trading at P/E of 39x based on FY17E earnings. Recommend SUBSCRIBE to the  issue with long term perspective. “

NVS Wealth Managers:  “ BSE IPO is being launched at a price band of Rs.805-806 per share. In H1FY17, BSE has already posted PAT of Rs.129 Crs (full year FY17 estimate being Rs.260 Crs on a tiny equity capital of Rs.10.74 Crs, generating a robust EPS of Rs.48.5). At the higher price band of Rs.806 per share, it works out to a modest PE of 16.6x its FY17E EPS, making it a very attractive IPO for investors. Recommend all investors to AGGRESIVELY SUBSCRIBE to the issue.   BSE IPO could be one of the best wealth generators of 2017.”

India Infoline (IIFL):  “At the upper end of the issue price band, i.e. Rs.806, the stock is available at a P/E multiple of 20.6x on FY17E annualized earnings as compared to MCX, which is trading at P/E of ~40x. The valuation demanded by the company is justified and hence recommend a ‘SUBSCRIBE’ to the issue”

SP Tulsiyan Analysts: “Despite facing a competitive scenario, one may consider the issue for the long term, thanks to its inexpensive”

Business Standard: “Punch missing in BSE’s IPO. While the valuations are undemanding, there are a host of concerns. Click Here 

Rediff.com : Why the spark is missing in BSE’s IPO; While BSE’s asking valuation is reasonable, compared to peers, there are some factors that long-term investors need to consider before investingClick Here 

Economic TimesWhy big-bang BSE IPO may still fail to enthuse Dalal Street  Click Here

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