M&A

M&A

NCDEX close to being acquired by NSE; drops IPO plans

BusinessLine  

National Stock Exchange (NSE), is in the final stages of acquiring the National Commodity and Derivatives Exchange (NCDEX) for an enterprise value of INR 900-1,000 crore. NSE, the original promoter of NCDEX, still holds a 15% in the exchange as an anchor investor. With an 11% stake, LIC is the No 2 shareholder in NCDEX. Other shareholders include National Bank for Agriculture and Rural Development (NABARD), Indian Farmers Fertiliser Cooperative Ltd, Oman India Joint Investment Fund, Punjab National Bank, Canara Bank, InvestCorp PE Fund I, Build India Capital, Shree Renuka Sugar and Jaypee Capital, all of which may get shares in the NSE following the merger deal. NCDEX had got a go-ahead from Sebi for an INR 500 crore IPO. But this is likely to be put on the backburner due to the merger talks with NSE.