flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

BSE Ltd., Asia’s Oldest Stock Exchange, to Go Public!

Editor's Note: Take a look at our featured best practice, Comprehensive Guide to Financial Statement Analysis (89-slide PowerPoint presentation). This document provides a detailed step-by-step guide on how to analyse financial statements. Designed for anyone who wants to understand how to review financial data and interpret the findings, the document is split into the following sections: Introduction to financial statements 1. Income [read more]

* * * *

Editor’s Note: This author has developed an Excel-based financial model that contains historical financial data for BSE Ltd. over the last decade, based on consolidated financial statements.  The data has been collated from BSE’s annual reports for these ten years, and manually hard-coded into the financial model.  You can view this BSE Ltd. (Bombay Stock Exchange) Excel Model here.

* * * *

BSE_-_Bombay_Stock_Exchange_BuildingBSE Ltd. (formerly Bombay Stock Exchange Ltd.) is Asia oldest and India’s first stock exchange, established 1875. It claims to be the world’s fastest stock exchange, with a median trade speed of 6 microseconds.

Till 1994, BSE was India’s leading stock exchange. However, with the launch of National Stock Exchange of India Ltd. (NSE) in 1994, BSE’s market share in India’s stock market turnover gradually declined. BSE currently has a market share of around 25% in the cash equities segment.

BSE Ltd. aims to go public and is likely to file a draft red herring prospectus (DRHP) with India’s stock market regulator Sebi, over the next few months. Accordingly, the IPO could take place sometime in early-to-mid 2017. The IPO will not involve issue of new shares, as BSE has a strong balance sheet, and does not require funds infusion. The IPO will be via the OFS (offer for sale) mechanism, wherein existing shareholders will get an exit by offering their shares in the IPO.

As per Indian securities regulations, Indian stock exchanges can only list on other stock exchanges. Therefore, BSE shares can only be listed on the NSE, and not on BSE itself, and vice versa. This is in contrast with US regulations which permits US exchanges shares to be listed on themselves.

Indian regulations have been recently altered so as to permit individual foreign investors to acquire up to 15% equity stake in stock exchanges. The limit on investment by foreign investors such as overseas banks, insurers, stock and commodity exchanges and depositories has been raised from 5% to 15%. This is likely to lead to some of the existing investors increasing their stake via the IPO. Also, foreign portfolio investors too will be permitted to acquire shares in BSE via IPO and secondary market. As such, the IPO could generate considerable interest from investors, global and local alike.

The unlisted shares of BSE Ltd. have already started exchanging hands in India, in the run-up to the IPO.

Financial Model on BSE Ltd.

My financial model (BSE Ltd. Bombay Stock Exchange Excel Model) will enable investors, who are looking to invest in the unlisted shares or the IPO, to carry out financial analysis of the exchange.

The model contains historical financial data for BSE Ltd. for the last decade, i.e., for the financial years 2006-07 through 2015-16, based on consolidated financial statements. The data has been collated from BSE’s annual reports for these ten years.

The model does not contain earnings estimates for the exchange. However, you can plug in your own estimates of earnings, into the columns provided. The model does not constitute a recommendation to buy or sell shares of BSE Ltd., or investment advice.

What’s Different?

So, the model contains only historical financials. No big deal! This model provides tremendous value. Period.

The model contains not just raw financial data, but even the key schedules of income statements, providing detailed breakdown of Income, and Administrative and Other Expenses, into various sub-headings, which in turn, provide more color on the sources of revenue and expenditure. These too have provided for all of the last ten years.

Revenue and Other Income has been broken down into several sub-headings, to provide clarity. Breakdown of Administrative and Other Expenses into as many as 18 different heads of expenses has been provided. Key ratios for both income statements and balance sheets, have been provided.

The model can be purchased on Flevy.com here.

43-slide PowerPoint presentation
This document explains the financial statement analysis process. Most slides are instructional and covered topics include the financial statement analysis process, financial ratios analysis, accounting information (assumptions, principles, policies, procedures), and others. Financial [read more]

Do You Want to Implement Business Best Practices?

You can download in-depth presentations on Financial Analysis and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.

For even more best practices available on Flevy, have a look at our top 100 lists:

These best practices are of the same as those leveraged by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Improve the growth and efficiency of your organization by utilizing these best practice frameworks, templates, and tools. Most were developed by seasoned executives and consultants with over 20+ years of experience.

Readers of This Article Are Interested in These Resources


22-slide PowerPoint presentation
Evaluating Financial Ratios (or Financial Comparables) is a crucial method for evaluating the financial and competitive health of a company relative to its competitive peers. This document provides an overview to Financial Analysis, as well as deep dive into 20 widely used Financial [read more]


 
Excel workbook
 
 
192-slide PowerPoint presentation

About Nitiin A. Khandkar

Nitiin A. Khandkar is a Chartered Accountant and the Founder of Beyond Quant InvestTraining, an investment training venture based in Thané (Mumbai) India. Prior to founding Beyond Quant InvestTraining, he has had a multi-faceted career as a sell-side equity research analyst in India, a buy-side analyst and portfolio manager in US equities. He was Head of Institutional Equity Research desks, with a couple of sell-side firms in India. In the past, Nitiin has arranged one-on-one institutional investor road-shows for a few India-listed companies. He has also marketed Indian IPOs to foreign institutional investors and private equity investors. Nitiin was the winner of the Best IPO Analyst Award for 2009 by television channel Zee Business. He has worked in India and overseas. Nitiin remains passionate about Value Investing, and likes to read books on the topics. He continues to write on investing themes, and builds financial models on Indian companies. Nitiin also advises Indian start-ups/corporates on raising funds from VCs/PEs. Nitiin can be reached at founder@bqinvesttraining.com and nitin.k.ier@gmail.com.

,



Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  

The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.
  


OUR CORE OFFERINGS
Flevy Marketplace: Top 100
· Strategy & Transformation
· Digital Transformation
· Operational Excellence
· Organization & Change
· Financial Models
· Consulting Frameworks
· PowerPoint Templates
FlevyPro (Subscription Service)
KPI Library
Streams (Functional Bundles)
Flevy Executive Learning (FEL)
PowerPoint Services

FREE Resources

About Flevy
Management Topics
Marcus (AI-Powered Consultant)
Partner Program
LinkedIn Influencer Marketing
FAQ / Terms / Privacy / Blog
Contact Us: support@flevy.com



CONNECT WITH US!
       
TOP 100 TRENDING TOPICS
Acquisition Strategy
Agile
Analytics
Artificial Intelligence
Balanced Scorecard
Best Practices
Big Data
Breakout Strategy
Business Continuity Planning
Business Plan Financial Model
Business Transformation
CMMI
COBIT
Change Management
Cloud
Communications Strategy
Company Financial Model
Competitive Advantage
Competitive Analysis
Consulting Frameworks
Continuous Improvement
Core Competencies
Corporate Culture
Cost Reduction Assessment
Customer Experience

BROWSE BY FUNCTION
Strategy, Transformation, & Innovation
Digital Transformation
Operational Excellence and LSS
Organization, Change, & HR
Management Consulting

Customer Journey
Customer Service
Cyber Security
Data Privacy
Decision Making
Digital Marketing Strategy
Digital Transformation
Digital Transformation Strategy
Due Diligence
ESG
Employee Engagement
Employee Training
Enterprise Architecture
Growth Strategy
HR Strategy
Hiring
Hoshin Kanri
ISO 27001
ITIL
Information Technology
Innovation Management
Integrated Financial Model
Kaizen
Kanban
Key Performance Indicators

ADDITIONAL RESOURCES
Business Strategy Frameworks
Case Studies
Consulting Training Guides
COVID-19 Trend Data
Digital Transformation
Financial Advising Services (FAS)

Knowledge Management
Leadership
Lean
Lean Manufacturing
Logistics
M&A (Mergers & Acquisitions)
Manufacturing
Market Research
Marketing Plan Development
Maturity Model
McKinsey PowerPoint
McKinsey Templates
Operational Excellence
Organizational Change
Organizational Design
Performance Management
Post-merger Integration
Pricing Strategy
Process Improvement
Process Maps
Procurement Strategy
Product Launch Strategy
Product Strategy
Project Management
Quality Management


Free Resources
KPI Library
Lean Management
Lean Six Sigma Training Guides
Marcus Insights
Operational Excellence

Real Estate
Remote Work
Restructuring
Risk Management
Robotic Process Automation
SWOT
SaaS
Sales
Scrum
Service Design
Six Sigma Project
Social Media Strategy
Strategic Planning
Strategic Thinking
Strategy Development
Supply Chain Analysis
Sustainability
Target Operating Model
Team Management
Total Productive Maintenance
Value Chain Analysis
Value Creation
Value Stream Mapping
Visual Workplace
Workplace Safety


Product Strategy
Small Business Owner
Startup Resources
Strategic Planning
Strategic Planning Process
Value Innovation Strategy


© 2012-2024 Copyright. Flevy LLC. All Rights Reserved.