Asia’s oldest stocks bourse BSE is all set to create history in the domestic capital market, when it becomes India’s first stock exchange to launch an initial public offering (IPO) on January 23.

The exchange has geared up, doing aggressive roadshows and expects good demand in pre-IPO placement. But does the offer for sale (OFS) offer enough on the table for retail investors in the price band of Rs 805-806?  At the upper end of the price band, the stock is available at a price multiple of 28 times, based on annualised FY17E earnings. The nearest listed peer MCX trades at 39 times its FY17E earnings.

CDSL, where BSE holds 54.2 per cent stake, has already filed papers with Sebi for an IPO. Due to regulatory changes, BSE is required to cut its holding in CDSL to 24 per cent or less by March 31, 2017. Analysts said BSE has some Rs 2,565 crore cash reserves and a cash & bank balance of Rs 1,421 crore against share capital of Rs 10.7 crore.