Nexus Venture Partners Sells Stake in India Shelter Finance
Nexus Venture Partners, a prominent venture capital firm, has divested a 5.97% stake in India Shelter Finance Corporation, a Gurugram-based company that caters to first-time home loan buyers in Tier-II and Tier-III cities. The company focuses on serving the low- and middle-income segments of the population.
Bulk Deals on BSE
Through its affiliates, Nexus Ventures III and Nexus Opportunity Fund II Ltd, Nexus recently completed two bulk deals on the Bombay Stock Exchange (BSE). In total, they sold 6.4 million shares of India Shelter Finance, achieving a deal value of Rs 4.81 billion. The shares were sold at a price range of Rs 752.35 and Rs 753.27 per share.
The sale of shares at this price resulted in a transaction worth Rs 4.82 billion, allowing Nexus to reduce its stake in India Shelter Finance from 21.32% to 15.35%.
Increase in Stakes for Goldman Sachs and SBI Life Insurance
Meanwhile, other major players in the market seized the opportunity to increase their stakes in India Shelter Finance. Goldman Sachs and SBI Life Insurance collectively acquired a 1.31% stake, equivalent to a total amount of Rs 1.06 billion.
Goldman Sachs purchased 742,000 shares, raising its stake in the company to 1.78%. On the other hand, SBI Life Insurance bought 670,000 shares, increasing its holding to 2.56%.
ICICI Prudential Life Insurance Joins the Buyer’s List
Adding to the list of increased stakes, ICICI Prudential Life Insurance acquired 770,000 shares, which represents a 0.72% stake. The value of this acquisition stands at Rs 579.3 billion.
However, the identities of the other buyers who acquired shares in India Shelter Finance remain undisclosed.
It remains to be seen how the changes in stakeholding and the entrance of new shareholders will impact India Shelter Finance Corporation and its strategy in serving the low- and middle-income segments of Tier-II and Tier-III cities. Only time will reveal the impact of these transactions on the dynamics of the real estate sector in India.
