Inter-Continental Exchange eyes ICICI Bank’s NCDEX stake; LSE, SGX approach Inter-connected Stock Exchange for stake

Inter-Continental Exchange (ICE), an exchange for energy derivatives wants to buy ICICI Bank’s stake in the National Commodities and Derivative Exchange (NCDEX). ICICI Bank is one of the promoters of NCDEX, along with the National Stock Exchange (NSE), Life Insurance Corporation (LIC) and agricultural refinance bank, the National Bank for Agriculture and Rural Development (NABARD). ICICI Bank is reportedly looking for a buyer for all or part of its 8% stake.

This comes in the wake of a massive consolidation in the domestic stock exchanges. Already, The New York Mercantile Exchange (NYMEX) is discussing the possibility of acquiring equity in the Multi-Commodity Exchange (MCX). The NSE has brought in New York Stock Exchange (NYSE) as a partner with 5% equity. Meanwhile, the Bombay Stock Exchange (BSE) is discussing a strategic partnership with Deutsche Bourse, SGX and NASDAQ. BSE is also negotiating for a stake in the Ahmedabad-based on-line exchange NMCE (the National Multi-Commodity Exchange) to gain a presence in commodity futures trading and improve its valuations. NMCE, in turn, may issue new shares to BSE to get additional funds for expansion.

Read the Business Standard article.
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Deutsche Borse, Singapore Stock Exchange in race to acquire BSE interest

In a related development, the London Stock Exchange (LSE), Singapore Stock Exchange (SGX) and some top private equity players have shown an interest in The Inter-Connected Stock Exchange of India (ISE), an exchange floated by a group of small exchanges, which is fast completing its revival strategy to attract global peers. The exchange will soon be presenting a proposal to SEBI about the future plans and product initiatives of the exchange. ISE has received a one-year extension to complete its corporatization till September 15, 2007. There is a possibility for this to happen as the SEBI plans to provide a third stock exchange platform to investors, especially for small and medium enterprises, which are located in tier-III or tier-IV cities. The valuation process of the exchange is expected to be over within three to four weeks. The ISE is promoted by 13 regional stock exchanges, which include bourses from Bangalore, Cochin, Bhubaneshwar, Hyderabad, Jaipur, and Mangalore. ISE has a network that covers nearly 134 cities across 25 states.

Read the Business Standard article.

Deutsche Borse, Singapore Stock Exchange in race to acquire BSE interest

The Singapore Stock Exchange (SGX) and Deutsche Borse are two of some of the leading stock exchanges that may get to buy a stake in Bombay Stock Exchange (BSE).
The London Stock Exchange (LSE) and NASDAQ are two other exchanges that seem to be interested in acquiring a stake in BSE. At one point of time, even NYSE was considering an investment in BSE and was said to have done a due diligence. This was before the government had stipulated a 5% limit for a foreign investor in stock exchanges. NYSE has now invested $115 mn in the National Stock Exchange for a 5% stake (See Related Post).

BSE seems to be in a hurry to find a strategic partner as soon as possible as it wants to complete its IPO before May 2007. A strategic partner is expected to give BSE a higher valuation. Going by the valuation that has NSE received for its stake sale to NYSE and other three foreign entities, it seems that BSE will get anywhere between $750 mn and $1 bn.

Currently, BSE senior management and merchant bankers are busy in fulfilling formalities related to finding a partner and filing a draft prospectus. BSE will also have to increase its capital base from the present Rs. 70 lakhs and is considering a bonus to meet the minimum capital requirements.

Read the article in Business Standard.