MSE to divest 51 p.c. stake

Special Correspondent

CHENNAI: The Madras Stock Exchange (MSE) has set in motion the process of ‘de-mutualisation’ by inviting expression of interest from prospective bidders for equity stake in it.

The exchange is disinvesting 51 per cent stake. MSE is proposing to do this either by way of an offer for sale or through private placement of shares or through a combination of both. The exchange was an organisation limited by guarantee (by members) until November 2005 when it became a public limited company under the Companies Act. It has issued 1.70 lakh shares of Rs. 10 each to 117 brokers. According to V. Balasubramonium, Deputy Secretary, the exchange would issue 18 lakh fresh shares to facilitate the disinvestment process. No individual or group could bid for more than five per cent stake in the exchange, he said.

The disinvestment of equity would be done through a bidding process. The bids would be accepted till July 27. A committee, constituted to oversee the disinvestment process, would meet on July 28 and finalise the bidders, he added. Asked about the exit option for prospective investors in MSE, the deputy secretary said the exchange could get itself listed later on.

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