NSE cuts transaction charges by 1%, plans exit from non-core businesses

SE announced its decision to exit non-core businesses, including technology and education. The divestment process attracted interest from over 60 parties, with 7 submitting non-binding bids.

The National Stock Exchange (NSE) board approved a 1% reduction in transaction charges for cash equity and equity derivatives starting April 1, 2024.

This move is expected to impact the company's annual revenue from transaction charges by approximately Rs. 130 crores.

Additionally, NSE announced its decision to exit non-core businesses, including technology and education. The divestment process attracted interest from over 60 parties, with 7 submitting non-binding bids.

Following due diligence, final offers were received from 2 buyers, and the highest bidder entered into exclusive negotiations. Avendus served as the transaction adviser, supported by Deloitte for Finance & Tax diligence, Deloitte as the tax adviser, and Indus Law as the legal adviser, it said. The expected date is 31 Mar 2024 for completion of sale.

NSEIT Limited, a wholly owned subsidiary, is selling its digital technology business, including subsidiaries NSEIT US, Aujas Cybersecurity Limited, and CXIO Technologies Limited, to Investcorp for a total agreed value of Rs. 1,000 crores. The Enterprise Value for the Digital Technology Business is expected to be in the range of Rs. 425 crores to Rs. 475 crores.

The total operating income for FY23 and YTD December 31, 2023, was Rs. 695 crores and Rs. 639 crores, respectively. As of March 31, 2023, and December 31, 2023, the net worth was Rs. 256.91 crores and Rs. 327.60 crores, respectively, accounting for 5.86% and 1.25% of NSE Consolidated financials for FY23.

NSEIT's standalone business consists of two main segments: Digital Examination Business and Digital Technology Business. In the current sale to Investcorp, only the Digital Technology Business is being acquired. Given that it's a business segment and not a distinct entity within NSEIT Standalone, the divestment is agreed to be conducted through a slump sale, NSE said in its release.