Deutsche Boerse unlikely to boost BSE stake before IPO

mumbai — Deutsche Boerse AG is unlikely to increase its stake in BSE Ltd. before the Indian stock exchange holds its initial public offering next year, according to two people familiar with the matter.

The German bourse’s stake in BSE was thrust into focus last month when India’s cabinet changed the law to allow foreign companies to own as much as 15 per cent of equity exchanges.

Despite the change, Deutsche Boerse has no plan to increase its five per cent stake, said the people, who asked not to be named because the discussions are private. Deutsche Boerse spokesman Heiner Seidel declined to comment, as did BSE spokesman Yatin Padia.

Analysts have been speculating that BSE would be an attractive investment, as India loosens ownership restrictions and both BSE and its rival the National Stock Exchange of India prepare to go public.

“Indian markets are growing very fast and the exchange space will see a lot of action in the coming days,” said Sanjay Sachdev, chairman at ZyFin Advisors an asset management advisory firm.

“Getting strategic foreign investors will help Indian exchanges to improve their technology, innovation and best practices.” — Bloomberg