BSE plans an IPO next year ~ appoints 14 Investment Bankers for the Issue ! Phew !

BSE plans an IPO next year ~ appoints 14 Investment Bankers for the Issue ! Phew ! 

Valuation of BSE Shares has been a pet subject of mine right from 2008  when I actually began this Blog and I have updated my valuation views several times on my blog since then

I fact  few years ago a High Networth Friend & Client was approached by a Leading Broking House and was being strongly propositioned to buy BSE Shares from them at a high Price ~ He simply confronted them with my Valuation which was at half the price they were asking for !  My Friend tells me this broking house admired me at the same time while cursing me !

Have a look at my earlier BSE Shares Valuation blogs

George Soros Bets on BSE…Picks up 4% of its Equity for US $ 35 M => Rs 380/share…Let’s Update BSE Value

Sunday, August 22nd, 2010

Updated Valuation of BSE Ltd

Tuesday, December 8th, 2009


Tuesday, August 5th, 2008


The latest Consolidated Results of BSE Ltd as on September 30,2012 show a  worrying picture of falling profits and contingent liabilities

  • The Networth is marginally gone up to Rs 2265 crs with Equity Component at Rs 10.37 crs (FV Rs 1) giving a Book Value of Rs 218 per share
  • The Profit has dropped to just under Rs 35 crs for the hy FY 13 while the full year FY 12 the profit was Rs 178 crs
  • Thus the EPS for the half year is Rs 3.35 and for the full year should be a simple extrapolation to Rs 7.It was Rs 17 for FY 12
  • The Half Year Profit has been impacted  significantly by the reversal of Rs 10.27 crs Prior Period Items of  Net Income and the Rs 65.28 crs for Liquidity Enhancement Incentive Programmes (LEIPS) for the revival  of  the Derivatives Segment.LEIP was  launched in September end 2011 and  the Full Year FY 12 debit was Rs 60.49 crs though the effective period was second half
  • Rs 134.50 crs has been treated as Contingent Liabilities for the demand raised by the Department of Telecommunication ,Government of India for revised VSAT Network License Fees and Royalty etc.BSE is challenging this claim 
  • The Consolidated Results include the performance of BSE Ltd and it’s seven subsidiaries ,one jv and one associate
  • The Operating Segments are Stock Exchange Activity and Depository Activity 
  • The Depository Activity contributed nearly Rs 120 crs Revenue in FY 12 in an Operating Income of Rs 538 crs ~ that’s a strong over 22% contribution
  • The Segment Profit shown in FY 12 from Depository Activity is a strong Rs 95 crs from an overall Rs 285 crs ~that’s a huge 33%
  • read more