Gurugram-based India Shelter Finance Corporation (ISFC) has seen a notable transaction as Nexus Venture Partners, its largest shareholder, sold a 5.97% stake for ₹482 crore via open market transactions. The shares were sold through two bulk deals on the Bombay Stock Exchange (BSE), resulting in Nexus Venture’s stake in ISFC falling from 21.32% to 15.35%. This sale reflects a strategic shift by Nexus, which has been a key investor in ISFC since its first investment in 2012.
In contrast, several major investors have increased their stakes in ISFC:
- Goldman Sachs acquired 7.42 lakh shares, representing a 0.69% stake, increasing its total holding to 1.78%.
- SBI Life Insurance purchased 6.70 lakh shares, or 0.62%, boosting its holding to 2.56%, up from 1.94%.
- ICICI Prudential Life Insurance bought 7.70 lakh shares, representing a 0.72% stake, for ₹57.93 crore.
The transactions resulted in a 7.81% drop in ISFC’s share price, closing at ₹730 on the BSE. This sharp decline underscores market sensitivity to large equity movements and investor sentiment shifts. Despite the share price drop, increased stakes by major financial institutions such as Goldman Sachs and SBI Life Insurance signal confidence in ISFC’s long-term growth.
Nexus Venture Partners first invested in ISFC in 2012 and gradually built up a stake of 28.2% through multiple fundraising rounds. The recent divestment reflects a portfolio reallocation by Nexus, marking a pivotal moment for ISFC and its investors. While the exit of a major venture capital firm might affect market performance, the increased stakes from prominent financial investors suggest optimism about ISFC’s future.
Summary:
- Nexus Venture Partners sold a 5.97% stake in ISFC, reducing its holding from 21.32% to 15.35%, raising ₹482 crore.
- Major financial institutions like Goldman Sachs, SBI Life Insurance, and ICICI Prudential Life Insurance have increased their stakes in ISFC.
- ISFC’s shares fell 7.81% after the transactions, reflecting market sensitivity, while continued investor confidence from financial giants suggests long-term optimism.