Oct 8, 2008

Business - Premji Invest picks up 3 percent stake in NSE for $100mn

Premji Invest, the $1-billion investment fund floated by billionaire Azim Premji, the chairman of Wipro, has picked up 3 per cent stake in the National Stock Exchange (NSE) for $100 million (Rs 480 crore), valuing the bourse at $3.3 billion (Rs 15,840 crore).
The chief investment officer of Premji Invest, Prakash Parthasarathy, confirmed this development and said the deal was struck some time ago.
Some of the NSE shareholders were diluting their stake to conform to the government guidelines that allow them to hold a maximum of 5 per cent each in Indian stock exchanges.
It is only yesterday that the Securities and Exchange Board of India (Sebi) decided to allow certain categories of shareholders to hold up to 15 per cent in bourses.
In January 2007, the New York Stock Exchange (NYSE) had bought 5 per cent in NSE for $115 million. The transaction at that time valued NSE at $2.3 billion. Goldman Sachs, General Atlantic and Softbank Asian Infrastructure Fund also picked up 5 per cent each in the bourse.
Premji Invest has so far invested in five companies – Cicada Resorts, HealthCare Global, Subhiksha Retail, Carnation and now NSE.
The private equity investments of Premji Invest are understood to have crossed the $200-million mark. Premji Invest is also pretty active in the secondary markets, and is understood to have exposure to at least 40-odd companies.

No comments: