NSE has acquired an additional 9.42% stake in NSDL from Specified Undertaking of the Unit Trust of India for around $25mn, valuing NSDL at $250mn.

The deal has taken NSE's stake in the depository from 15.63% to 25.05%, while SUUTI's share in NSDL has reduced to 15.58%.

ICICI Securities Ltd was the sole advisor to SUUTI for the transaction.

NSE's move comes a few days after BSE announced that it seeks consent from SEBI to hike stake in CDSL from 36.6% to 51%,

According to the SEBI Regulations, 1996, the sponsor should hold a minimum of 51% stake in a depository and no participant can hold more than 5%.

Currently, BSE, along with other sponsors like Bank of India, State Bank of India, HDFC Bank, Union Bank and Bank of Baroda, holds over 94% stake in CDSL. HDFC Bank, who holds 14.36% stake, wants to sell its stake to BSE.

Transaction Reference: ET

NSDL- National Securities Depository Limited, is the largest depository firm in India with 1.05 cr Demat accounts. It is promoted by IDBI, UTI and NSE. Its other participants included various private as well as public sector banks. IDBI is the single largest shareholder in NSDL with 30% stake.

NSDL posted an income of Rs 215.05cr and a net profit of Rs 26.68cr for the financial year March 2009.

A major chunk of NSDL’s revenues now comes from providing IT-enabled services, such as setting up a Tax Information Network for the Income Tax department, setting up Central Record keeping Agency for the Pension Fund Authority.

In comparison, CDSL reported an income of Rs 75.32cr and a net profit of Rs 34.02 cr in FY09. CDSL's entire operating income comes from its core depository services business.

SUUTI was set up out of the erstwhile Unit Trust of India in February 2003 to take over about 25 assured return schemes, including US-64, of the beleaguered UTI. It was supposed to be wound up in 2009 but has been given an extension for another five years to March 31, 2014.

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  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
09/03/10	NSDL-NSE	M&A	National Stock Exchange Of India Limited	25.00

 

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  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
Specified Undertaking of the Unit Trust of India		Sector Agnostic

Company
Name	Promoters	Office	Competitor	Website
National Stock Exchange Of India Limited	IDBI Bank Limited LIC of India Industrial Finance Corporation Of India State Bank of India ICICI Bank Limited SBI Capital Markets Limited (I Bank) Stock Holding Corporation Of India Limited Bank Of Baroda Canara Bank General Insurance Corporation Of India National Insurance Company Limited The New India Assurance Co.Limited The Oriental Insurance Co. Limited United India Insurance Co. Limited Punjab National Bank Oriental Bank Of Commerce Indian Bank Union Bank Of India IDFC	Exchange Plaza,C-1,Block-G, Bandra Kurla Complex, Bandra(East), Mumbai-51	Bombay Stock Exchange Limited United Stock Exchange of India Limited	www.nseindia.com
National Securities Depository Limited	National Stock Exchange Of India Limited Specified Undertaking of the Unit Trust of India IDBI Bank Limited	Trade World, A wing, 4th & 5th Floors, Kamala Mills Compound, Lower Parel, Mumbai - 400 013.	Central Depository Services India Limited	www.nsdl.co.in

  Advisor

ICICI Securities