Hot Spot Hyderabad

                                                                                         

Realty firms, such as, Nagarjuna construction, Bhagyanagar Industries, GS Realtors, including a group of overseas investors are in the race to pick up a slice of Hyderabad Stock Exchange (HSE), as it has kick-started its de-mutualisation process. According to stock exchange sources, big realty majors, such as, DLF and Reliance Retail have also evinced interest in staking a HSE claim.

The reason behind the high –pitched interest shown by realty, retail and infrastructure players is, because HSE has Rs. 340-crore property under its control. The main exchange building, located in Hyderabad’s high-street retail area, itself is valued at Rs. 250-crore.

On course to off-load 51% stake to the public, HSE’s demutualization will segregate trading and ownership of the bourse. According to the process, subject to approval from Sebi, HSE will off-load a maximum of 5% to individuals or a consortium, at a floor price per equity share fixed at Rs. 450/-.

The bourse will follow a combination of divestment and issuance of fresh shares, if unable to off-load the desired level, after, it will corporatise into a limited company, according to Panduranga Reddy, Director - HSE.

With the bidding process scheduled for 21st July, the regional stock exchange has issued expression of interest to potential bidders. As part of the divestment exercise, the exchange will off-load a minimum of 14.89 lakh equity shares, 51% of the total number 29.20 lakh shares to persons, other than members.

The realty assets of the bourse include a semi-constructed building in an area of 1.53-lakh sq. ft. with a built-up of 5-lakh sq. ft. and a parking area of 1.5-lakh sq. ft., large enough to house a mega mall. However, HSE has requested the state government to regularise land and building, as well a writ petition is also pending before the Andhra Pradesh High Court.

HSE has over 292 trading members and around 774 listed, and while Delhi, Bngalore and Chennai have already completed the de-mutualisation process, incidentally, Hyderabad bourse is one of the last major regional exchanges to kick-start the exercise.

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Source: IndiaRealEstateblog

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