NSE Streamlines: Exits Non-Core & Cuts Fees

12 Mar 2024 , 02:35 PM

Beginning on April 1, 2024, the National Stock Exchange (NSE) board approved a 1% decrease in transaction fees for cash equities and equity derivatives.

The company’s yearly revenue from transaction fees is predicted to be affected by this change by about ₹130 Crores.

The NSE also declared its intention to leave non-core industries including technology and education. More than sixty parties expressed interest in the divestiture process, and seven of them submitted non-binding bids.

After conducting due diligence, two purchasers submitted their final proposals, and the highest bidder started exclusive talks. According to the statement, Deloitte provided help for Finance & Tax diligence, Indus Law provided legal counsel, and Avendus acted as the transaction adviser. The deal is anticipated to be completed on March 31, 2024.

For a total agreed value of ₹1,000 Crores, NSEIT Limited, a fully owned subsidiary, is selling its digital technology business to Investcorp, which includes subsidiaries NSEIT US, Aujas Cybersecurity Limited, and CXIO Technologies Limited. It is anticipated that the Digital Technology Business’s Enterprise Value will fall between ₹425 Crores and ₹475 Crores.

By December 31, 2023, the operational income for FY23 and YTD was 695 Crores and 639 Crores, respectively. The net worth as of December 31, 2023, and March 31, 2023, was ₹327.60 Crores and ₹256.91 Crores, respectively. These amounts made up 1.25% and 5.86% of the NSE Consolidated Financials for FY23.

The two primary business segments of NSEIT’s standalone operation are the digital technology business and the digital examination business. The Digital Technology Business is the sole one being acquired in the current transaction to Investcorp. According to NSE’s announcement, a slump sale will be used to complete the divestment because it is a business sector rather than a separate entity inside NSEIT Standalone.

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