State Bank of India mulls divesting 5% stake in NSE

Our Bureau Mumbai | Updated on January 20, 2018 Published on May 17, 2016

After IDBI Bank sold 2 per cent stake in the NSE in March 2016, one more shareholder — State Bank of India — is planning to disinvest up to 5 per cent of its equity stake in the exchange.

SBI Capital Markets (SBICAP) has been mandated by the bank to conduct the disinvestment through a competitive bidding process. It has invited potential purchaser(s)/ investor(s) to submit their duly executed bids by May 19.

Among the shareholders who own 5 per cent or more stakes in the NSE are SBI (10.19 per cent) and SHCIL (5 per cent). SBICAP holds 4.33 per cent stake in the NSE.

On March 30, IDBI Bank sold nine lakh shares of India’s largest stock exchange to the Life Insurance Corporation of India (LIC). The bank’s stock exchange filing, however, did not mention the share price at which the sale was completed. Following the transaction, IDBI Bank’s stake in NSE came down to 3 per cent while LIC’s stake has increased to 12.51 per cent.

SBICAP said the bids submitted should contain information on the value in Indian rupees that the bidder is prepared to offer to purchase/acquire, either for the entire 5 per cent shareholding (22.5 lakh equity shares) of the NSE or part thereof, along with assumptions, if any, relating to the calculation of the stake value. However, the bidder should bid for at least 2 per cent shareholding in the stock exchange.

NSE results

The NSE reported net loss of ₹240 crore for the fourth quarter ended March 31, compared to a net profit of ₹120.51 crore in the corresponding quarter last year. The loss is due to transfer of 25 per cent of profits worth ₹690.52 crore to the core settlement guarantee fund. This includes ₹527.19 crore carried forward as at March 31, 2015, in addition to ₹163.33 crore provision for FY16. Income from operations for the fourth quarter grew 5.6 per cent to ₹410.8 crore.

Published on May 17, 2016
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