Nexus Venture Partners Divests 5.97% Stake in India Shelter Finance for ₹482 Crore; Major Stake Acquisitions by Goldman Sachs and SBI Life
In a significant move, venture capital firm Nexus Venture Partners has sold a 5.97% stake in India Shelter Finance Corporation (ISFC) for ₹482 crore through open market transactions. The divestment, executed through two bulk deals on the Bombay Stock Exchange (BSE), involved the sale of 64 lakh shares at a price range of ₹752.35 to ₹753.27 per share.
Nexus Venture Partners, which had been a substantial investor in ISFC since 2012, reduced its holding from 21.32% to 15.35% following this transaction. The firm’s stake was held through its affiliates Nexus Ventures III and Nexus Opportunity Fund II Ltd.
Simultaneously, notable financial institutions have increased their stakes in ISFC. Goldman Sachs and SBI Life Insurance together acquired a 1.31% stake in the housing finance company for ₹106.26 crore. Goldman Sachs purchased 7.42 lakh shares, raising its stake to 1.78%, while SBI Life Insurance bought 6.70 lakh shares, increasing its holding to 2.56% from 1.94%.
ICICI Prudential Life Insurance also participated in the share market, acquiring 7.70 lakh shares or a 0.72% stake in ISFC at the same average price of ₹752.35 per share, amounting to ₹57.93 crore.
Despite the high-profile transactions, ISFC’s share price fell by 7.81% to close at ₹730 per share on the BSE. The decline follows the substantial stake sales and reflects broader market sentiment.
Nexus Venture Partners’ exit from a significant portion of its investment in ISFC marks a pivotal moment for the firm, which had originally invested in India Shelter Finance to support its focus on first-time home loan buyers in Tier-II and Tier-III cities of India. The firm’s stake reduction follows a successful period of investment and growth in the housing finance sector.
