Nexus Venture Partners recently sold a 5.97% stake in India Shelter Finance Corporation for INR 482 crore via open market transactions. This move reduced Nexus' stake in the company from 21.32% to 15.35%. Meanwhile, financial institutions Goldman Sachs, SBI Life Insurance, and ICICI Prudential Life Insurance increased their stakes in the housing finance company by acquiring shares worth a combined INR 164.19 crore. India Shelter Finance, which serves first-time homebuyers in Tier-II and Tier-III cities, saw its stock decline following these transactions, closing at INR 730 on the BSE.
Earlier this week, Nexus Venture Partners, a renowned venture capital firm, sold a 5.97% stake in India Shelter Finance Corporation for INR 482 crore through open market transactions. India Shelter Finance, based in Gurugram, focuses on providing home loans to first-time buyers in Tier-II and Tier-III cities across India, catering to the low- and middle-income segments. Nexus Venture Partners, through its affiliates Nexus Ventures III and Nexus Opportunity Fund II Ltd, offloaded 64 lakh shares of India Shelter Finance in two bulk deals on the BSE. Nexus Venture Partners sold these shares within a price range of INR 752.35 to INR 753.27 per share, bringing the total deal value to INR 481.95 crore. This sale reduced Nexus' stake in the company from 21.32% to 15.35%.
As Nexus Venture Partners trimmed its shareholding, financial institutions such as Goldman Sachs and SBI Life Insurance increased their stakes in India Shelter Finance. Together, they acquired a 1.31% stake in the company, valued at INR 106.26 crore. Goldman Sachs bought 7.42 lakh shares, equating to a 0.69% stake, while SBI Life Insurance purchased 6.70 lakh shares, representing a 0.62% holding. They executed both transactions at an average price of INR 752.35 per share. Following these acquisitions, Goldman Sachs now holds a 1.78% stake in India Shelter Finance, while SBI Life Insurance has increased its ownership from 1.94% to 2.56%. ICICI Prudential Life Insurance also joined the ranks of institutional investors raising their stakes, purchasing 7.70 lakh shares at an average price of INR 752.35 per share, translating to an investment of INR 57.93 crore and a 0.72% stake in the company. Despite these major share transactions, India Shelter Finance's stock price experienced a decline, to close at INR 730 per share on the BSE. However, the details of the other buyers participating in the transaction remain undisclosed.
Nexus Venture Partners first invested in India Shelter Finance in 2012. Over the years, it steadily increased its stake through various fundraising rounds, eventually holding 28.2% of the company. This latest divestiture marks a reduction in Nexus' stake, signalling a strategic reshuffling of its portfolio. The increased stakes from Goldman Sachs, SBI Life Insurance, and ICICI Prudential Life Insurance indicate strong institutional confidence in India Shelter Finance's growth potential. The company actively plays a vital role in the country's housing finance market, particularly in regions underserved by traditional financial institutions. These developments highlight the dynamic shifts within India's real estate finance sector as major investors reposition themselves in response to market opportunities.
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