Soach Global eyes 25X returns from NSE IPO, to pocket Rs 295 Cr via partial exit

Mauritius-based Soach Global Opportunities Fund is set to make nearly 25X returns on its decade-old investment in the National Stock Exchange (NSE) through a partial exit in the exchange's initial public offering (IPO). The fund is selling 20% of its holding through the offer for sale (OFS), while retaining the remaining 80% as a long-term investment. According to the company's press release, Soach Global Strategic Holdings Limited, a wholly owned subsidiary of the fund, is selling 16.5 lakh equity shares at NSE's IPO price band of Rs 1,700 to Rs 1,785 per share. The transaction is expected to fetch approximately Rs 280 crore to Rs 295 crore. Soach Global acquired 1.5 lakh NSE shares from the Industrial Finance Corporation of India (IFCI) in January 2016 for Rs 59.25 crore at Rs 3,950 per share. Over the following decade, its holding increased to 82.5 lakh shares through corporate actions without any additional investment. Its adjusted acquisition cost stands at Rs 71.8 per share. At the upper end of the IPO price band, the fund's partial exit will generate nearly five times its entire original investment. Following the sale, Soach Global will continue to hold 66 lakh NSE shares, valued at approximately Rs 1,120 crore to Rs 1,180 crore. Hong Kong-based Soach Global Corporation Limited operates in fund management and advisory, with a focus on trade, commerce and long-term investments in India and global markets. Its Mauritius-based investment subsidiary holds the group's investment in NSE. Anubhav Dayal, founder and director of Soach Global Opportunities Fund, said the partial exit is intended to enable wider retail participation in NSE's growth. He added that the fund views its remaining holding as a long-term investment and has no plans to re-enter after the sale. NSE's IPO, which opened on September 17, will close for subscription today. The issue was subscribed 1.76 times as of 11:50 AM on the final day. Ahead of the IPO, the exchange raisedRs 6,746 crorefrom 189 anchor investors, including LIC, Norway's Government Pension Fund Global, ADIA, GIC, Fidelity, Societe Generale. Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever. You may find a list of our investorshere.

Original source: Entrackr