3 hrs ago
NSE IPO Gives Soach Global Nearly 25 Times Investment Return
Soach Global bought shares in the National Stock Exchange in 2016.
It originally spent Rs 59.25 crore.
Over time, its number of shares grew to 82.5 lakh without more spending.
The company is now selling 16.5 lakh shares through the NSE IPO.
Depending on the final price, those shares could be worth up to about Rs 295 crore.
This is nearly 25 times the adjusted cost of the shares being sold.
Soach Global will keep the other 80 percent of its NSE holding.
Its founder said the fund sees NSE as a long-term investment and wants retail investors to have a chance to own shares.
Soach Global invested Rs 59.25 crore in 1.5 lakh NSE shares in January 2016.
Corporate actions increased its holding to 82.5 lakh shares without additional investment.
The investor is offering 16.5 lakh shares, or 20 percent of its NSE holding, in the IPO.
At the Rs 1,700-Rs 1,785 price band, the stake could fetch roughly Rs 280 crore to Rs 295 crore.
Soach Global will retain 66 lakh shares, citing retail participation and NSE’s long-term growth potential.
- Who
- Mauritius-based Soach Global Strategic Holdings, a wholly owned subsidiary of Soach Global Opportunities Fund, is selling part of its NSE stake.
- What
- The investor is offering 16.5 lakh National Stock Exchange shares in the IPO while retaining 66 lakh shares.
- Where
- The investment vehicle is based in Mauritius, and the IPO concerns India’s National Stock Exchange.
- When
- Soach Global bought its original NSE shares in January 2016; the article does not specify the IPO date.
- Why
- The fund says it wants retail investors to participate and believes India’s economic growth and rising capital-market participation support NSE’s long-term potential.
Key facts
- Original investment
- Rs 59.25 crore for 1.5 lakh shares bought in January 2016
- Original seller
- Industrial Finance Corporation of India
- Current holding
- 82.5 lakh NSE shares after corporate actions
- Adjusted acquisition cost
- Approximately Rs 71.8 per share
- Shares offered
- 16.5 lakh shares, representing 20 percent of the holding
- IPO price band
- Rs 1,700 to Rs 1,785 per share
- Estimated sale value
- Approximately Rs 280 crore to Rs 295 crore
- Shares retained
- 66 lakh shares, potentially valued at about Rs 1,122 crore to Rs 1,178 crore
Sources
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