• Investing in NSE makes a fortune!


• Soach Global will sell 20% stake


• You will get 25 times return

NSE IPO: Mauritius-based Soach Global Strategic Holdings Limited, a wholly-owned subsidiary of Soach Global Opportunities Fund (both collectively referred to as “Soach Global”), has decided to divest part of its decade-old investment in National Stock Exchange of India Limited. The fund is selling part of its stake through an offer for sale in NSE's initial public offering (IPO). The IPO has opened today. (NSE IPO)

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The total investment value is ₹59.25 crore

The fund had purchased 1,50,000 equity shares of NSE from Industrial Finance Corporation of India Limited (IFCI) in January 2016 at ₹3,950 per share. The total value of these investments was ₹59.25 crore. Over the next decade, various corporate actions increased the fund's stake to 82,50,000 shares without any additional investment. After adjusting for these corporate actions, the fund's average acquisition price is ₹71.8 per share.

About 25 times return

Now the fund is selling 16,50,000 equity shares out of its 82,50,000 shares. This amounts to 20% of its total stake. Based on the IPO's price range of ₹1,700 to ₹1,785 per share, the sale would be valued at around ₹280 crore to ₹295 crore. This will give the fund almost five times its original total investment, i.e. around 25 times return. The Fund will retain its remaining stake of 66,00,000 shares in NSE, i.e. 80% of its total stake. Based on this price band, the remaining stake is valued at around ₹1,120 crore to ₹1,180 crore.

Only 13 crore people are registered investors on NSE

Anubhav Dayal, Founder and Director, Soach Global Opportunities Fund said, “India is a fast growing economy. A large number of young people are looking for growth opportunities and are rapidly learning about the risks and opportunities of participating in the capital market. We are selling some of our holdings in the Offer for Sale as we want a large number of general retail investors to have some stake in the NSE. These retail investors will also benefit from the growth of the NSE when they buy small stakes in the NSE either directly or through mutual funds. will get, as we got by investing in NSE last ten years. Out of India's 1.4 billion population, only about 13 crore people are registered investors on NSE and this is a huge opportunity.”

The revenue of NSE may increase

He added, “Our country has a tradition of buying gold during festivals or family functions. Gold once purchased by a family is kept for a long time, even for generations. It is usually not sold unless the money is urgently needed. Retail investors can compare NSE shares to buying gold. As a multi-asset-class trading platform, NSE's revenue may increase, while its operating costs will remain largely constant, as most of those costs have already been incurred. It is a high-technology platform that settles”.

Increase in revenue on a fixed cost basis

“Also offers trading in various asset classes such as equities, commodities, power futures, bond index futures and coal. As India's economy develops, the list of tradable products will also increase. This will increase revenues on a largely fixed cost basis. This will also reflect in the price per share of NSE after the listing. This is a unilateral partial sale of our stake and we have no plans to reinvest.”

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