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