Soach Global to partially exit NSE after decade-long investment

Soach Global is selling a portion of its long-term investment in the National Stock Exchange of India (NSE). The fund is selling about 20% of its stake through NSE's IPO, which could yield approximately Rs 280-295 crore. Soach Global currently holds 80% of its original stake, acquired in 2016, which has grown significantly in value.

The IPO is an offer for sale, meaning Soach Global is selling its shares, while NSE is not raising fresh capital. By September 21, the issue had been fully subscribed 5.7 times, with the listing set for September 24. Soach Global's investment began in January 2016, with the fund originally purchasing 1.5 lakh shares from IFCI for Rs 59.25 crore.

Following corporate actions, the holding expanded to 82.5 lakh shares with a reduced adjusted acquisition cost of around Rs 71.8 per share. At the IPO price range, the full holding would be worth between Rs 1,403-1,473 crore, or approximately 4.7-5 times the original investment. Soach Global's founder and director, Anubhav Dayal, explained the sale as an effort to broaden ownership.

He hoped more retail investors would participate in capital markets, either directly or through mutual funds. NSE's value proposition rests on its large registered investor base and high-tech operating model, processing trades in nanoseconds. The company began electronic equity trading in 1994 and has since expanded into various financial instruments, including derivatives.

However, competition and regulatory scrutiny pose challenges, with rivals like BSE and MCX expanding their offerings, and SEBI reviewing derivatives trading and settlement methods.