May 18, 2011

BSE - Share Consolidation - Update by Saumin Patel

saumin patel to me


 BSE TO DISCUSS SHARES CONSOLIDATION

         The board of the Bombay Stock Exchange (BSE) that meets on Wednesday will discuss a proposal to consolidate the shares of the exchange, in preparation for a bid to list its shares, a person familiar with the matter said.
        Currently, BSE shares have a face value of `1, which will become `2 after the consolidation as the number of shares is halved. Though this would not have any impact on the financials of the company, the move would pave the way for the company to get listed on the bourses.
        As Securities and Exchanges Board of India regulations do not allow a company with face value below `10 to issue shares below an issue price of `500, this move would allow the exchange to issue shares at a price close to its current valuations, when it gets listed. The share price of BSE is estimated to be around `250 now

SAUMIN PATEL
saumin_73@yahoo.co.in

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