The Hindu Business Line : LFP Group eyes 5% stake in DSE

New Delhi, Oct 23 The Delhi Stock Exchange (DSE), which is one of the oldest stock exchanges in the country, has yet another foreign investor knocking at its door. Levi Family Ltd Partnership (LFP Group), an overseas equity fund, wants to pick up five per cent stake in DSE, sources said. If the regulatory approvals for this investment are granted, the foreign direct investment (FDI) component in the exchange would increase from the current 15 per cent to 20 per cent.

“The DSE board has approved the Levi proposal, subject to SEBI approval. This is a case of re-transfer (existing domestic investor selling stake to foreign investor)”, a senior DSE official said, indicating that the FDI inflow from this proposal would be about Rs 11 crore.

DSE had, in August this year, completed the demutualisation process and allotted 51 per cent stake in the exchange to set of domestic and foreign investors.

FDI component

Of the 51 per cent, FDI component stood at 15 per cent and the balance 36 per cent came from other investors including some domestic corporate houses. The three foreign investors who took five per cent stake each (for about Rs 10.6 crore each) were New Vernon Private Equity Ltd, Mauritius, Passport Global Master Fund SPC Ltd, British Virgin Islands and Lamb Holdings, according to a DSE official. “Even after the LFP Group acquires five per cent stake, we have room for another six per cent of FDI. We don’t see any problem on this front as there is lot of interest from certain foreign banks and bourses”, the DSE official.

Although clutch of foreign investors from Kuwait had earlier evinced interest in picking up stake and even received the FIPB nod, sources said that they subsequently withdrew.