CorporateUS firm NVP to buy over 2% stake in NSE for Rs 252 cr
The US-based private equity firm Norwest Venture Partners (NVP) today said it would pick up a little over 2 per cent stake in NSE, the country"s largest stock exchange in terms of trading volume, for about Rs 252 crore, valuing the bourse at over Rs 12,000 crore.
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The equity firm has signed a definitive agreement to acquire 2.11 per cent stake for a consideration of about Rs 252 crore in the National Stock Exchange of India (NSE), Norwest Venture Partners said in a statement.
This would be the first FII investment under new policy subject to the regulatory approval, it said.
The stake will be transfered by IL&FS Securities Services, a wholly-owned subsidiary of Infrastructure Leasing and Financial Services.
"The valuation accorded to NSE reflects its standing in global markets and the deal would close by the next week," NVP India Managing Partner Sohil Chand told PTI.
While exchange valuations have dropped dramatically in all developed markets, NSE remains well regarded in terms of quality of operations, management and growth, he said.
It would be recalled that in November 2008 the Ministry of Finance had clarified that Foreign Institutional Investors could hold up to 23 per cent of the equity in an Indian exchange, even if such exchange was not listed.