Dubai Investor Boosts Stake In IPO-Bound National Stock Exchange

Prominent UAE-based investor and business leader Siddharth Balachandran has strengthened his position in India's capital markets by significantly increasing his stake in the National Stock Exchange of India Ltd (NSE), which is preparing for a long-awaited initial public offering.

Balachandran, executive chairman and CEO of Buimerc Corporation Ltd, DIFC, and chairman of the Indian Business & Professional Council Dubai, now owns 9.315 million shares in NSE, representing about 0.4 per cent of the exchange. This move places him among the most significant individual shareholders of India's largest stock exchange. He is already the single largest individual shareholder in BSE Ltd, with a 3.01 per cent stake. Established in 1875, BSE is Asia's oldest stock exchange and home to over 5,000 listed companies.

The dual exposure is significant: together, NSE and BSE form the twin pillars of India's equity markets, handling virtually all trading activity in the country. Holding meaningful stakes in both bourses places Balachandran in a unique position among global investors, with influence across two of Asia's most powerful financial institutions.

NSE, incorporated in 1992, has grown to become the world's largest derivatives exchange by contracts traded and the third-largest in cash equities by number of trades. As of May 2024, the companies listed on NSE had a combined market capitalisation of $5.4 trillion, ranking it as the world's fourth-largest stock exchange. With a near-monopoly of 93 per cent in the cash segment and 97 per cent in equity derivatives, NSE dwarfs most rivals. Its flagship index, the Nifty 50, is a globally recognized benchmark for India's capital markets.

The exchange's unlisted shares have gained momentum ahead of its IPO, pushing its estimated market capitalization to around Rs6 trillion. This valuation already makes NSE the ninth most valuable company in India, even without a listing. Analysts believe Balachandran's move to raise his stake is strategically timed, given the likely value unlocking once NSE lists.

Balachandran's increased stake comes at a time when global investor interest in India's financial markets is rising, underscoring both his confidence in NSE's growth trajectory and the broader UAE-India investment corridor. Industry analysts see his move as strategically timed, given that NSE's listing could unlock significant value for existing shareholders.

Speaking on his investment strategy, Balachandran has previously emphasised the importance of aligning with high-growth, transparent institutions that embody long-term potential. His Dubai-based Buimerc Corporation has diversified global interests spanning the US, EU, India and the UAE.

The stake consolidation also signals a deepening of ties between India's fast-growing financial sector and the UAE's investment community. Balachandran, who is widely recognised for his philanthropic and community leadership roles, has been instrumental in promoting economic and professional linkages between the two countries.

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