IFCI To Exit NSE
IFCI Limited is planning to exit NSE by selling its 5.44% stake. The amount expected through this deal is about Rs.600 crore ($128 Mn) which would value the NSE at about $2.4 billion.
IFCI will use the proceeds for investments that offer higher returns.
IFCI, which initially held a 12.44% stake in NSE, sold 7% in 2007 to Goldman Sachs Group Inc., NYSE Group Inc, General Atlantic LLC and Softbank Asian Infrastructure Fund.
Transaction Reference: Businessweek
NSE's other existing investor include Temasek Holdings Pte, which bought 5% stake from NYSE Euronext in May for Rs.675 crore ($175 Mn ) that valued NSE at over Rs 13,500 crore ($3,500 Mn). NYSE had bought the stake in October 2007 for Rs.500 crore ($115 Mn) that valued NSE that time at Rs.10,000 crore ($2,300 Mn).
There was also speculation that NYSE had wanted to increase its stake in NSE, but was frustrated by the inability to do so because of regulations that prevent an entity from holding more than 5% in an Indian stock exchange.
Temasek had acquired stake in the NSE from the NYSE, which exited from NSE after NYSE entered into a cross-listing agreement with the Chicago Mercantile Exchange.
Under the agreement between the NSE and CME, S&P Nifty-50 index has been made available to the CME for the creation and listing of the U.S. dollar-denominated futures contracts for trading on the CME.
On the other hand the Dow Jones Industrial Average (DJIA) and S&P 500 — the two leading U.S. indices — would be traded on the NSE platform in India. The CME owns the rights to S&P and DJIA and has given the licence to the NSE for trade in futures contracts on indices.
During June 2009, Norwest Venture Partners had picked up a 2.11% stake in NSE from IL&FS Securities Services in a secondary transaction for Rs 250 crore. The deal valued NSE at around $2.5 billion. Earlier, in 2008, Hero Honda and Srei Infrastructure Finance had acquired stakes from IFCI and Stock Holding Corporation of India at Rs 3,500 per share.
For the financial year ended March 31, 2009, NSE generated an income of Rs 1024 crore and a net profit of Rs 515 crore, compared to Rs 1038 crore and 521 crore, respectively, in the previous year.
As of March 2010, there were 1,470 companies listed on the exchange, with combined market capitalisation of Rs 60,09,173 crore ($1.3 trillion). In March 2010, the average daily trading turnover on the exchange was Rs 88,305 crore or $19.6 billion (of which Rs 13,631 crore or $3 billion was in cash equities and Rs 74,674 crore or $16.6 billion in derivatives).
Recently, George Soros bought 4% stake in BSE from Dubai Financial for about $35 Mn (over Rs.160 crore) that valued BSE at over $800 Mn (Rs. 3,952 crore).
Also, ICICI Bank acquired 1.33% stake in United Stock Exchange of India Ltd (USE).
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 12/11/10 | NSE - FT (Stake Sale) | Private Equity | 37.30 | |
| 02/09/10 | NSE - IFCI (Exit) | M&A | - | |
| 11/05/10 | NSE - Singapore Exchange | M&A | Singapore Exchange Limited | 150.00 |
| 03/05/10 | NYSE (Exit) - NSE - Temasek | Private Equity | Temasek Holdings Pte. Limited | 175.00 |
| 02/06/09 | National Stock - Norwest Venture Partners | Private Equity | Norwest Venture Partners | 53.15 |
| 07/10/08 | National Stock - PremjiInvest Fund | Private Equity | PremjiInvest Fund | 100.00 |
| 31/12/07 | National Stock - Kotak Private Equity | Private Equity | Kotak Private Equity Group | - |
| 06/09/07 | NSE - Fidelity Trustee Corporation | M&A | Fidelity Trustee Corporation Private Limited | 8.57 |
| 08/03/07 | National Stock - Actis LLP, Citi | Private Equity | Actis LLP | 138.00 |
| 09/01/07 | National Stock - General Atlantic, SAIF Partners, Goldman Sachs, NYSE Group Inc. | Private Equity | NYSE Group Inc. | 575.00 |
| 30/07/06 | National Stock - IL&FS Securities Services | M&A | IL&FS Securities Services Limited | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 02/02/12 | Private Equity | AU Financiers India Private Limited | - | Planned | |
| 01/02/12 | Private Equity | Vontobel Funds Inc | Kotak Mahindra Bank Limited | 174.39 | Completed |
| 01/02/12 | M&A | Kotak Mahindra Bank Limited | Credit Card Portfolio | - | Completed |
| 01/02/12 | Private Equity | Aberdeen Asset Managers Limited | Housing Development Finance Corporation Limited | 275.47 | Completed |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| IFCI Limited | IFCI Tower, 61, Nehru Place | Infrastructure Development Finance Company Limited | www.ifciltd.com | |
| 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 |
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