HDFC Bank will buy one million shares at a price 70-80% higher than that at which a recent transaction was completed between two brokers when a few thousand shares changed hands.
Billionaire George Soros bought 4% stake in BSE for about $35m from Dubai Financial Holding, in August last year, valuing BSE at around $875m.
HDFC’s preferential offer values the exchange at $850m.
BSE’s valuation had suffered after the Bimal Jalan committee, formed to suggest a road map for market infrastructure companies gave its report last year.
A key recommendation of the Jalan report was not allowing stock exchanges to list. BSE has been planning to file for an Initial Public Offer for a long time.
Some foreign shareholders in BSE include Deutsche Boerse and the Singapore Stock Exchange which own 5% stake each.
Other shareholers include Caldwell India, Dubai Financial Group, Atticus Mauritius and Acacia Banyan Partners.
