U.S.-based exchange NYSE Euronext on Tuesday said it offloaded its entire five per cent stake in National Stock Exchange, India’s largest bourse, for $175 million (nearly Rs. 780 crore).

This deal values NSE at $3.5 billion.

“NYSE Euronext concluded the sale of its stake in the National Stock Exchange of India for gross proceeds of $175 million,” the U.S. bourse said in a statement while announcing its first quarter results.

On Monday, Singapore government’s investment arm Temasek Holdings announced the acquisition of five per cent stake in NSE.

NYSE had acquired the five per cent stake in India’s premier bourse for $115 million in 2007.

The proceeds would be used by NYSE Euronext to mainly repay debts.

At the end of March 31, 2010, NYSE Euronext had a total debt to $2.7 billion, which consists $2.1 billion in long-term debt and $0.6 billion in short-term debt.

Meanwhile, people close to the development had said that NSE’s recent arrangement with U.S.-based Chicago Mercantile Exchange (CME) was a primary reason for NYSE’s exit.

“Globally, NYSE and CME are competitors and NSE’s recent tie-up with the CME was the main reason for NYSE’s exit,” said a person close to the development.

In March this year, NSE and CME entered into an agreement under which NSE will begin trading in futures contracts of Dow Jones Industrial Average (DJIA) and S&P 500, while Nifty — NSE’s benchmark index — would be traded on CME.

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