BSE Ltd., Asia's oldest exchange, is counting on initial public offerings lined up this fiscal to boost its financials after a poor year.
“This year, in case the IPOs start coming out well, then the BSE is a dominant player in the IPO distribution framework and that is where it will benefit,” Ashishkumar Chauhan, managing director and chief executive officer at BSE Ltd., told BloombergQuint in a interview. Two of the company's main sources of revenue are annual and seasonal listing fees. “Last fiscal had fewer IPOs and that is why BSE got low revenue from there.”
The stock exchange's revenue fell 20 percent year-on-year to Rs 115.7 crore in the quarter ended March, according to its exchange filing. Profit declined 16.4 percent to Rs 51.9 crore. The company registered an operating loss of Rs 0.1 crore compared with a gain of Rs 35 crore a year earlier. The company also declared dividend of Rs 25 per share.
Still, Chauhan remains optimistic. “As investment activities pick up, the BSE will do well,” he said.
Watch the entire conversation here:
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