The National Stock Exchange (NSE) has emerged as the second most valuable company in the portfolio of ace investor Radhakishan Damani, founder of the retail giant DMart. Over the past few years, Damani has steadily increased his stake in India’s largest stock exchange.
He first entered NSE during the January–March 2020 quarter, acquiring a 1.58% stake from foreign investor Norwest Venture Partners X through a private deal. Norwest, once an active advocate for NSE’s listing, was compelled to divest its holdings following regulatory scrutiny related to the co-location and dark fiber case, which stalled the IPO plans.
Following a recent bonus issue, Damani now holds 3.90 crore shares in NSE, valued at approximately Rs 9,771 crore (based on a private market price of Rs 2,500 per share). This makes NSE his second most valuable investment after Avenue Supermart, where he holds a 23% stake. His other notable direct investment includes a 3.15% stake in VST Industries, a cigarette manufacturer.
Damani also invests through his investment firm, Bright Star Investments Pvt. Ltd., which holds stakes in Avenue Supermart, 3M India, Sundaram Finance, Sundaram Finance Holdings, and VST Industries.
It’s important to note that the valuation of NSE is based on private market pricing, which may carry a significant premium over its fair value once listed.
Investor interest in NSE has surged after the exchange permitted custodians and depositories to facilitate share transfers. The private market has become increasingly active, with NSE shareholder base surging to over 1 lakh shareholders and shares traded in private market with lot sizes starting as low as 50 shares.
However, investors should be cautious. Buying shares in the private market involves risks and does not offer the regulatory protections provided by SEBI or the stock exchanges.
. Read more on Markets by NDTV Profit.Damani now holds 3.90 crore shares in NSE, valued at approximately Rs 9,771 crore. Read MoreMarkets, Business, IPOs
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