National Stock Exchange of India (NSE) saw its own shareholding base widen over the

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last one year from 57 in last September to 64 this September. Financial Chronicle learns that there were seven buyers when Financial Technologies (India) sold its 0.98 per cent stake in NSE in November last year. FT, listed on NSE and the Bombay Stock Exchange, made the disclosure to the two exchanges on November 11 last year

These buyers included one Securities and Exchange Board of India-registered (Sebi-registered) foreign institutional investor (FII) and six Sebi-registered FII sub-accounts. Main FII, US-based Wellington Management Company’s two FII sub-accounts — Bay Pond MB, Bay Pond BMD MB — bought 0.71 per cent stake collectively while Wellington’s two other FII sub-accounts — J Caird MB and J Caird BMD MB — took a collective stake of 0.21 per cent.

A marginal 0.04 per cent stake was taken by the main FII, US-based First Opportunity Fund, while a collective marginal stake of 0.018 per cent was taken by Wellington’s two FII sub-accounts, Wolf Creek MB and Wolf Creek BMD MB.

For the 0.98 per cent stake in NSE, these seven FIIs or FII sub-accounts, paid FT Rs 3,800 per share, which valued the exchange at Rs 17,100 crore. The only other change in NSE’s shareholding over the past one year ending September was the transfer of a 0.21 per cent stake by JM Financial to another group company JM Financial Consultants. The price at which this transfer took place is, however, not known.

As a result of the sale, FT’s stake in NSE has came down to 0.02 per cent. It got Rs 167.20 crore out of the 0.98 per cent stake sale with the profit from the sale being about Rs 43 crore. In its annual report for FY11, FT gave an at-cost value of Rs 125.31 crore for the one per cent stake held at the end of the previous year (FY10). This meant FT had paid Rs 2,784.67 a share when it acquired the one per cent stake. The price of Rs 3,800 it got meant an appreciation of 36 per cent for the company.

NSE’s shareholding structure reveals a myriad mix of shareholders. While Life Insurance Corporation of India and State Bank of India still account for about 10 per cent stake each, there are several foreign investors holding one per cent or more (see table) stake in the bourse, which included a 5 per cent stake by Goldman Sachs’ GE Strategic Investments, 5 per cent stake by General Atlantic’s GA Global Investments and 3 per cent stake by Morgan Stanley’s MS Strategic (Mauritius).

A domestic mutual fund, Fidelity Mutual Fund, is seen to be holding a 1.08 per cent stake in NSE across five of its schemes. NSE’s shareholders holding below one per cent stake are also interesting to note. MSPL, one of India’s largest iron ore mining companies, held 0.44 per cent stake in NSE and two of its promoters, Rahulkumar Baldota and Shrenikkumar Baldota, held 0.25 per cent each. This gave the three connected shareholders a collective stake of 0.94 per cent in NSE.

S Gopalakrishnan, executive co-chairman of Infosys Technologies, holds 0.38 per cent, while Reliance Strategic Investments and Tata Investment Corporation held 0.19 per cent and 0.13 per cent, respectively.