NSE IPO Potentially Turning Out As Multibagger For RK Damani, Premiji

With the NSE Board’s IPO approval for an Offer For Sale (OFS), investors like RK Damani and Azim Premji could potentially unlock Rs 20,000 through this public offering.  This is because the growth in the unlisted NSE Share price proved to be a multibagger for them.

Let’s understand their NSE shareholdings, investors and returns.

R.K. Damani’s NSE Investment Journey

In 2020, the Veteran investor and DMart founder Radhakishan Damani acquired NSE unlisted shares, with 1.58% stake from foreign investor Norwest Venture Partners X through a private transaction. The deal was reportedly struck at Rs.825-900 per share, valuing Damani’s NSE investment at around Rs.650-700 crore.

Post bonus, RK Damani now holds around 3.90-3.91 crore NSE shares. At current private market prices of Rs. 300-2,500 per share, his NSE stake is valued between Rs. 9,000 crore and Rs.9,800 crore.

Therefore, after Avenue Supermarts (DMart), where he holds roughly a 23% stake, NSE is his 2nd most valuable investment.

Apart from capital appreciation, NSE has also been a strong dividend-paying company.

Over the last 5 years, Damani has earned approximately Rs. 322 crore in dividends from his NSE holding. This steady cash flow has further boosted the overall return on his investment, making it a classic example of Damani’s preference for high-quality businesses with predictable earnings.

Overall, his NSE investment has delivered 12-13x returns in just about five years, an exceptional outcome even by long-term investing in the unlisted share sector.

Azim Premji’s Much Older, Bigger Bet

While Damani’s investment stands out for its timing, Azim Premji’s bet on NSE goes back even further.

Premji Invest, through its PI Opportunities Fund, owns a 2.38% stake in NSE, which is roughly 5.98 crore shares. 

At current grey market prices, this holding is valued in the range of Rs.12,500-13,900 crore, making it one of Premji Invest’s most valuable long-term bets in the unlisted sector.

Premji Invest acquired the stake during 2007-08, at a price of around Rs. 400-500 per share, an investment of roughly Rs.450-500 crore. 

This investment gave him around more than 30x, which is normally the most successful long-term investment in an unlisted share in India.

NSE’s Expanding Shareholding Base

NSE’s ownership today is far more diversified than in the past. Public sector institutions such as LIC (10.7%), SBI (7.5%) and SHCIL (4.4%) together hold around 23%.

Alongside them are private and global investors like Aranda Investments (Temasek-backed), Morgan Stanley-linked entities, HNIs, and retail shareholders.

NSE now has over 1.77 lakhs shareholders, reducing concentration risk and improving liquidity ahead of the IPO.

Read Also: NSE board approved plans to launch its initial public offering (IPO)

At current grey market valuations, NSE’s market capitalisation stands close to Rs.5.75 lakh crore.

NSE Share Price Gave 60% Return In Just 1 Year

NSE share prices have climbed from roughly Rs. 1,200 to 1,300 per share to about Rs. 2,079 per share in just 12 months.

Over the last year, NSE’s unlisted share price gave around a 60- 70 % return.

Mainly, the move was driven by the bonus issue (the 4:1 bonus issue), high dividend payouts and rising confidence of investors in long pending NSE IPO.