India: IFCI sells 1.5% stake in NSE for $39.6m

Visual sourced from Mint website.

IFCI Ltd on Wednesday said that it has sold 1.5% of its equity share in the National Stock Exchange of India (NSE) for Rs.263.25 crore. The deal, the first large transaction in NSE shares in the last two years, values the exchange at Rs.17,550 crore.

In a notice to the stock exchanges, IFCI said that it had sold 6.75 lakh shares (1.5% stake) in the NSE at a price of Rs.3,900 per share. IFCI did not specify who bought the equity shares.

“NSE is happy to welcome the new shareholder,” said a spokesperson for the exchange in an email response, without naming the entity. The spokesperson did not respond to a question on the valuation at which the deal was struck.

IFCI, which held 5% in NSE prior to this deal, has been trying to sell its stake in the exchange since the start of this year. Other financial institutions, including IDBI Bank Ltd, have also been looking to sell shares in the exchange as a way to unlock capital.

While the State Bank of India (SBI) is the largest shareholder in NSE with a stake of 10.19%, other shareholders are Bank of Baroda, Indian Bank, Union Bank of India, Oriental Bank of Commerce, Punjab National Bank, Kotak Mahindra Bank Ltd and ICICI Bank Ltd, according to NSE filings with the Registrar of Companies.

The last big transaction involving NSE shares took place in June 2013, when GTI Capital Group bought 0.44% in the exchange from IDFC for Rs.79 crore, valuing the bourse at Rs.17,955 crore, according to VCCircle Network.

IFCI’s stake sale has happened at a valuation slightly lower than that.

At 10.40am, the shares of IFCI were trading at Rs.21.10 on the BSE, up 1.2%. The benchmark BSE Sensex was trading at 25,864, up 0.6%.

When contacted by Mint on the development, an NSE spokesperson said the exchange will get back to the query later.

This article was first published on Livemint.com

 

Also Read: India: Staffing services firm TeamLease files for IPO, to raise about $75m

 

 

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.