Marquee Funds Trim Holdings in NSE Amid IPO Uncertainty

A group of prominent funds have reduced their stakes in the National Stock Exchange (NSE) in the fiscal year 2023-24, citing uncertainty around the long-awaited IPO and fund life cycles.

Elevation Capital abandoned its entire holdings of 68 lakh NSE shares through SAIF II SE Investments Mauritius, potentially fetching between ₹2,300-3,200 crore in the unlisted market.

Accompanying this move, Acacia Banyan Partners also divested its complete shareholding of over 78 lakh NSE shares, while several other funds like TA Asia Pacific Acquisitions and PI Opportunities Fund, among others, have trimmed their positions.

Notable early investors in NSE, including General Atlantic, NYSE Group, Elevation Capital, and Goldman Sachs, acquired 5% stakes in 2007, setting the stage for foreign investment in the exchange. In the same year, Morgan Stanley, Citigroup, and Actis also secured smaller stakes.

Recently, Citigroup, Goldman Sachs, and Norwest Venture Partners have fully sold their shares in NSE, showcasing a trend of shifting ownership within the exchange.

Responding to queries about the delayed IPO, NSE’s CEO Ashishkumar Chauhan refrained from commenting on any developments, maintaining the status quo on the situation.

The shareholding structure of NSE has evolved, with high-net-worth individuals and family offices increasingly acquiring shares in recent years, further dispersing ownership across a broader base.

This shift is evident as over 10,000 resident individuals now hold a significant 13.8% stake in NSE, marking a substantial increase from the previous year’s figures.

Amid these changes, NSE’s shares have surged by 75% in the unlisted market over the past year, reflecting the evolving dynamics within the exchange.