According to ET Now, BSE is planning a value unlocking drive for Star MF platforms which have maintained and, in some cases, improved their performances and set new records despite the COVID-19 pandemic slump. Star MF recorded transactions worth Rs 22,828 crore in October despite the economic blow received due to COVID-19.
BSE is one of the top stock exchanges of Asia and has seen companies that have performed amazingly in the last couple of quarters- addressed as the Star MF (Mutual Fund) platforms. Despite COVID-19, these platforms have set records (SIP, Mutual funds too).
Thus, BSE plans a value unlocking a drive, basically planning the sale of a minority stake in these Star MF platforms. Various organizations are eager to pick up minority stakes in Star MF platforms. ICICI securities is finalised as the advisor to this transaction.
The cumulative valuation for Star MF platforms is estimated to be around 2,000 crore rupees. BSE’s overall market cap around Rs 20,000 crore plus, so almost 8-9% of the total value being devoted to Star MF platforms. Type of companies lining up to acquire stakes are mostly big FinTech companies. Also, private equity players have expressed interest in the same.
BSE had last decided ‘in-principle’ explore the possibility of unlocking value in its distribution business that is Star MF on August 3, 2020. BSE has not yet responded for comment.