The members of Vadodara Stock Exchange (VSE) raised Rs 12 crore by divesting over 51% of its total equity as part of its demutualisation process. The deadline set by Sebi for the second and last set of stock exchanges to complete their demutualisation process came to an end on Friday.
“With September 14, 2007, being the last date to complete the demutualisation process, VSE has completed the process well within the deadline set by market regulator,” VSE MD Dipak Raval said. Around 29 investors have picked up stake in 15-year-old regional stock exchange.
Some of the investors include companies like Financial Technologies, one of the promoters of Multi Commodity Exchange of India (MCX). Other players include Amod Stamping, Lisa Finevest and Pratham Group company-Pratham Investment. A senior official of Reliance Group has also been allotted 2% in VSE. According to Mr Sanjiv Shah, Sebi nominee on VSE board, eight corporate houses have been allotted 26% of VSE’s total equity. “We expect that with prominent corporate houses as VSE’s shareholders, the market value of the exchange would go up further,” added Mr Shah.
Before the demutualisation process, 290 brokers, including 54 corporate members had 100% equity in the exchange. Earlier, Mumbai-based Haribhakti, appointed by VSE as a consultant, had pegged the total valuation of VSE at Rs 27 crore and the exchange’s share at Rs 187. VSE’s subsidiary VSE Stock Service reported a turnover of Rs 13,784 crore in FY07 in the cash segment, up from Rs 8,251 crore in FY04.
As part of the demutualisation process, VSE has divested total 52.65% stake to the investors, which also include high networth individual. The exchange Friday transferred more than 7.5 lakh shares to the investors at a price Rs 152 per share, which has helped the exchange to raise Rs 12 crore.
“VSE is now awaiting a final notification from market regulator SEBI, after which the exchange will be considered as demutualised exchange,” said KK Naria, director at VSE.
Source: Economic Times