Business Economy


Soach Global to earn nearly 25 times return from partial NSE stake sale

Mumbai, Sep 17 (UNI) Soach Global Strategic Holdings Limited, Mauritius is set to realise a substantial return from the partial sale of its stake in the National Stock Exchange of India Limited, with the transaction expected to generate nearly 25 times the fund’s average acquisition cost.
The investment firm had acquired 150,000 equity shares of NSE from Industrial Finance Corporation of India in January 2016 at Rs ₹3,950 per share. The purchase involved a total investment of ₹59.25 crore. Over the following decade, the holding increased to 8,250,000 shares through corporate actions, without any additional investment. As a result, Soach Global’s average acquisition cost stands at ₹71.8 per share.
The company is now proposing to sell 1,650,000 NSE equity shares, representing 20 per cent of its current holding, through the offer for sale component of NSE’s initial public offering. The IPO price band has been fixed at ₹1,700 to ₹1,785 per share, putting the value of Soach Global’s proposed sale at approximately ₹280 crore to ₹295 crore.
The partial exit alone will therefore generate proceeds equivalent to nearly five times the fund’s entire original investment of ₹59.25 crore. Based on its average acquisition cost, the investment has delivered a return of roughly 25 times over the period.
Following the sale, Soach Global will retain 6,600,000 NSE shares, equivalent to 80 per cent of its existing position. At the IPO price band, the remaining stake would be valued at approximately ₹1,120 crore to ₹1,180 crore.
Explaining the decision to participate in the offer for sale, Anubhav Dayal, Founder and Director of Soach Global Opportunities Fund, said the fund wanted a larger number of retail investors to gain exposure to NSE.
“We are participating in the offer for sale and selling a partial stake of what we own because we would like to see a large number of the mass retail population hold some stake of NSE,” Dayal said.
He said retail investors buying smaller interests in NSE, either directly or through mutual funds, could also participate in the exchange’s future growth, similar to the benefit Soach Global had received from its investment made a decade ago.
Dayal also pointed to the size of the potential investor base in India. He said that of the country’s 1.4 billion people, only around 130 million are registered investors on NSE, describing the gap as a significant opportunity for wider retail participation.
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