TA Associates invests in Indian stock exchange
TA Associates has invested an undisclosed sum in the National Stock Exchange of India (NSE).
Dhiraj Poddar, a managing director with the firm, confirmed the deal to Business Standard. TA declined to disclose the amount nor the identity of the sellers but local media reports indicate NSE received INR11.3 billion ($150 million) in committed capital. The deal is said to have secured an exit for some existing investors. NSE's other backers include ChrysCapital Partners, Norwest Venture Partners and General Atlantic.
Founded in 1994, the company is one of India’s two main bourses alongside the Bombay Stock Exchange (BSE). The latter was founded earlier - in 1875 - and offers 3,000 more stocks than NSE. As of July 3, the total market capitalization of BSE-listed companies was INR142.5 trillion compared to INR141.4 trillion for the NSE.
In addition to listings, the NSE also offers trading services, clearing and settlement services, indices, market data feeds, technology solutions, and financial education offerings. It also oversees compliance by trading and clearing members.
“We have invested in other exchanges across the globe. People [in India] are channelizing more savings towards financial assets. This will drive more flows into equity and boost trading volumes over a period of time,” said Poddar. “We are backing the growth that we expect to see in trading volumes over many years.”
The bourse has repeatedly explored the option of a domestic listing over the years. However, previous plans were said to have been derailed because the country’s securities regulator stated the exchange had given preferential treatment to certain brokerage houses. NSE first received private equity funding in 2007.
TA has previously invested in the likes of InterContinental Exchange, a commodities bourse, and Bats Global Markets, a global operator of exchanges for financial markets in the US and Europe.
In India, the firm has positions in nine other companies, including online payment service provider BillDesk. Earlier this year, TA backed enterprise-facing software start-up Accion Labs.
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