BSE Ltd owns and operates the BSE exchange platform. With 5,868 companies listed on the main board, it is the largest exchange by number of listed companies. Currently BSE has a 14% market share in the Equity Cash segment. While equity savings in India remains low, with other asset classes becoming less attractive, investor’s acceptance of equity as an investment is gaining momentum. With India remaining an attractive investment destination, BSE is likely to see decent growth in business. BSE has sustained the high competition in last many years which is a positive argument in our opinion. Its holding in CDSL and Clearing Corporation will continue to be value accretive in the long run. At the issue price, the stock is offered at 20.6x its FY2017E annualized EPS, which we believe is reasonably priced and hence, recommend SUBSRIBE to the issue.