Exclusive: Talks to buy NSE's IT division are underway for Persistent Systems

 Exclusive: Talks to buy NSE's IT division are underway for Persistent Systems

NSEIT has been blocked by the National Stock Exchange in accordance with the Mahalingam Committee's recommendations, which were made by SEBI.

Sources familiar with the negotiations informed Moneycontrol that midcap IT and software services firm Persistent Systems is in talks to buy a majority share in NSEIT, the National Stock Exchange's (NSE) fully owned IT services division.

NSEIT was founded in 1999 and offers customers in the banking, insurance, and capital markets industries digital exam and edtech solutions, cyber security, RPA, testing, cloud services, and major infrastructure management services.

In 2021, the company's revenue was reported as Rs 272.4 crore in regulatory filings. Email inquiries to NSE and Persistent Systems went unanswered until this report's publication.

giving up non-core business

Following a number of recommendations by a committee tasked by the Securities and Exchange Board of India (SEBI) to improve governance at stock exchanges and other market infrastructure organizations, the NSE has decided to sell its IT section.

The group, led by former full-time SEBI member G Mahalingam, suggested a number of actions, including the nation's major stock exchange, NSE, withdrawing from non-core operations.

In response, the NSE management said earlier this year that, in accordance with the Mahalingam Committee report's recommendations, it has started the process of decreasing managerial bandwidth from non-core activity.

"This process is anticipated to be completed eventually, and as a result, the NSE Group's technology and education businesses will be recorded as assets held for sale and ceased operations as required by the accounting and disclosure framework. has been categorized," Ashish Chauhan, the MD and CEO of the NSE, said in May.

Persistent Systems, which was founded in Pune in 1990, has grown to become a major force in the midcap IT industry. It has made a number of overseas and Indian purchases throughout the years.

For around $72 million in 2022, it purchased MediaAgility, a US-based company. Persistent Systems recorded sales of Rs 2,449 crore for the second quarter of 2023–24, which is 17.72% higher than the same time the previous year.

Thanks to its strong position as a worldwide engineering leader and its expertise in enterprise modernization across key areas including high-tech, emerging industries, BFSI, and healthcare, the business has exceeded industry growth for 14 consecutive quarters.

Persistent Systems ended at Rs 6,290 on the National Stock Exchange on December 7, a decrease of 0.72% from the day before.