NSE IPO likely to hit D-Street in third week; listing around Sept 25

The highly anticipated initial public offering (IPO) of the National Stock Exchange (NSE) is likely to hit Dalal Street in the third week of September, with the exchange targeting a listing around September 25, according to industry sources.

The country’s largest stock exchange received the green light from the Securities and Exchange Board of India (Sebi) today for its proposed IPO, taking it a step closer to a public-market debut nearly a decade after its listing plans were first put on hold.

IPO may open around Sept 15

According to industry sources, NSE is likely to announce the price band for the issue next week, with the IPO expected to open for subscription around September 15. The exchange is targeting a listing by September 25, although the final timeline could change depending on the issue schedule and regulatory requirements.

NSE is looking to raise around ₹30,000 crore at a valuation of about ₹5 lakh crore. Its shares will be listed on the BSE.

The exchange had filed its draft red herring prospectus (DRHP) with Sebi in June and received the regulator’s final observations on September 4, clearing a key hurdle for the proposed issue.

Entire issue to be an OFS

The proposed IPO will be entirely an offer for sale (OFS), with existing shareholders offering 14.89 crore equity shares. The offering represents nearly 6% of NSE’s equity, according to the DRHP.

Several prominent domestic and global institutional investors are expected to pare their stakes through the OFS. Life Insurance Corporation of India (LIC), one of NSE’s largest shareholders, however, has opted not to participate in the issue.

State Bank of India (SBI) is set to be the largest selling shareholder, offering up to 2.48 crore shares. Mauritius-based MS Strategic will offload around 1.6 crore shares, while Canada Pension Plan Investment Board (CPPIB) will sell nearly 1.19 crore shares.

Aranda Investments (Mauritius) plans to divest about 1.12 crore shares, while Bank of Baroda and Stock Holding Corporation of India will each offer around 1.1 crore shares.

Public-sector insurers are also participating in the OFS. General Insurance Corporation of India (GIC Re) and New India Assurance will each offer more than one crore shares, while National Insurance Company and United India Insurance Company will each sell around 60 lakh shares.

35% reserved for retail investors

According to the DRHP, 50% of the net offer has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors.

In addition, up to 5% of NSE’s post-offer paid-up equity share capital has been reserved for eligible employees.

The IPO is expected to be closely watched by investors given NSE’s dominant position in India’s equity and derivatives markets and the long wait for its stock-market listing.

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