US-based hedge fund Tiger Global Management is learnt to be in the final stages of talks with the Stock Holding Company of India Ltd (SHCIL) to acquire the latter?s 0.86% stake in the National Stock Exchange (NSE), which has been put on the block. According to sources in the know, SHCIL?s 0.86% stake in NSE is valued at Rs 130-140 crore, at a rate of Rs 3,500 per share. The proposed transaction would value NSE around Rs 14,000 crore (around $3 billion).
SHCIL had appointed IDBI Capital as transaction advisor for the sale of another 1% of SHCIL’s stake in NSE, for which IDBI Capital had invited bids last month. The bids closed September 22.
The overall foreign shareholding allowed in NSE is up to 49%, with FDI of up to 26% and remaining 23%, FIIs. The FDI limit was reached in 2007.
The NSE remains a hot cake for global investors owing to its increasing valuation and the wide range of products on offer. Among the existing exchanges, NSE holds 75% market share in the cash equity segment, with an average daily turnover of around Rs 20,000 crore, while the Bombay Stock Exchange (BSE) has an average daily turnover of Rs 6,000 crore. On the equity derivatives segment, NSE commands a market share of 100%. In currency derivatives, NSE and MCX-SX hold close to 50% market share each.
Despite several calls, RC Razdan, chairman and managing director, SCHIL, could not be contacted.
In June this year, Norwest Venture Partners (NVP) had picked up a 2.11% stake in NSE from IL&FS Securities Services Ltd in a secondary transaction for Rs 250 crore.
