ICICI Bank Acquires Stake In United Stock Exchange
ICICI Bank has acquired 1.33% stake in United Stock Exchange of India Ltd (USE).
ICICI Bank is the 26th bank to become the shareholder of USE.
Founded in 2008, USE is the newest stock exchange for trading in currency derivatives and has recently got SEBI's approval to start its operations . Its a Public-Private partnership with equity investments by both PSU banks and private sector banks.
Transaction Reference: BS
USE's shareholders represent 21 Indian public sector banks - Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab and Sind Bank, PNB, SBI, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India and Vijaya Bank.
Private Banks like Axis Bank, Federal Bank, HDFC Bank, J&K Bank and corporate houses like Jaypee Capital, MMTC, TCS and Indian Potash are the other shareholders of USE.
BSE is the largest shareholder of USE with a 15% stake acquired in August 2009 for Rs 22.5cr.
Earlier this year in february, Standard Chartered Bank and Bank of America Merrill Lynch were to pick 3% stake each in USE after seeking approval from Foreign Investment Promotion Board (FIPB), but still no development has been made till date.
USE’s business model is the first of its kind in the exchange space. In August 2009, it tied up with BSE to use its trading platform and clearing services for its currency and interest rate derivatives products, for which it will pay a fee to BSE.
In May 2009, USE had picked up 10% stake in International Multi Commodity Exchange - the 4th national level commodity exchange being promoted by Indiabulls Financial Services and MMTC.
George Soros's Soros Fund Management is planning to pick up 4% stake in BSE for about $40 Mn (around Rs.185 CR) valuing BSE at $1 Bn
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 21/03/11 | United Stock Exchange - Standard Chartered Bank | Private Equity | Standard Chartered Bank (Mauritius) Limited | - |
| 20/09/10 | United Stock Exchange - Riddhi Siddhi Bullion | M&A | Riddhi Siddhi Bullion Limited | - |
| 29/07/10 | United Stock Exchange - ICICI Bank | M&A | ICICI Bank Limited | - |
| 06/08/09 | United Stock - Bombay Stock Exchange | M&A | Bombay Stock Exchange Limited | 4.80 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 11/05/12 | M&A | Warburg Pincus International | Future Capital Holdings Limited (Co.) | - | Planned |
| 08/05/12 | M&A | HCL Group | DLF Pramerica Life Insurance Company Limited | - | Planned |
| 08/05/12 | M&A | AEGON | Aegon Religare Life Insurance Company Limited | - | Rumor |
| 02/05/12 | Private Equity | International Finance Corporation | MAS Financial Services Limited | 12.00 | Planned |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| ICICI Bank Limited | Landmark Race Course Circle, Alkapuri |
State Bank of India IDBI Bank Limited Dhanlaxmi Bank Limited Indian Overseas Bank Indian Bank |
www.icicibank.com | |
| United Stock Exchange of India Limited | Bombay Stock Exchange Limited | 1301,13th Floor, Arcadia,195 Nariman Point, Mumbai-400021. Maharashtra, India. |
National Stock Exchange Of India Limited Ahmedabad Stock Exchange MCX Stock Exchange Limited |
www.useindia.com |
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