Toronto-based Caldwell Investment Management is looking to acquire up to 5% stake in National Stock Exchange of India (NSE) for around $130 million. Urbana, the investment arm of Caldwell will help finance the deal, partly by selling as much as $53 million in equity-reported CNNMoney.
NSE’ market share in the nation’s equities and derivatives markets is approximately 75% and 98%, respectively. Thomas Caldwell, Chairman and CEO of Caldwell, said that the firm is valuing NSE at about $2.55 billion. He is bullish on India among the BRIC economies because of its better regulatory and legal framework.
“This is a fantastic exchange in a very, very good market environment. We’re buying at, we believe, terms that are attractive and it gives us a wonderful participation in the Indian economy,” – Bloomberg quoted Mr. Caldwell on the transaction.
Caldwell already owns 4% stake in Bombay Stock Exchange (BSE) through Urbana, the second largest trading spot.
