NSE IPO
Gears up for long-awaited IPO filing by March-end
After nearly a decade of anticipation, National Stock Exchange of India (NSE) is finally moving closer to the capital markets. The country’s largest stock exchange is targeting end-March to file its draft red herring prospectus (DRHP) for its much-awaited initial public offering, according to sources familiar with the development.
NSE is currently in advanced discussions with leading investment bankers and top law firms to finalise the prospectus structure and assess investor appetite for what could emerge as one of India’s biggest IPOs ever. Formal appointments of advisors are expected once the exchange receives a no-objection certificate from market regulator Securities and Exchange Board of India (SEBI).
On Saturday, SEBI’s chairperson indicated that regulatory approval for NSE’s listing could “possibly” come within this month, a remark that has reignited optimism around the long-stalled listing process.
While NSE has not disclosed the quantum of equity it plans to offer, unlisted market transactions value the exchange at around Rs. 5 trillion (approx. $55 billion), with its shares trading above Rs. 2,000 apiece. In comparison, its listed peer BSE Ltd is currently trading near Rs. 2,767 per share.
A listing delayed since 2016
NSE has been attempting to go public since 2016, but the process was derailed by regulatory investigations related to alleged preferential access in its co-location facilities. The matter remains pending before the Supreme Court. Last year, NSE proposed a settlement involving a payment of Rs. 1,387 crore, which SEBI is still evaluating.
One of the key challenges ahead is NSE’s exceptionally large shareholder base. With over 1.77 lakh shareholders, it is India’s largest unlisted company by number of investors. Lawyers drafting the IPO papers are reportedly working on mechanisms to ensure fair exit opportunities, with priority likely for long-standing institutional investors.
NSE’s prominent shareholders include Life Insurance Corporation of India, State Bank of India, Temasek Holdings, Morgan Stanley and Canada Pension Plan Investment Board.
If approvals fall in place, NSE’s IPO could mark a historic milestone for India’s capital markets.
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Disclaimer
This coverage is for informational and educational purposes. Chanakya Ni Pothi does not deal in Grey Market Premiums or recommend investments based on GMP data. Please consult your SEBI-registered investment advisor.
