NSE likely to file IPO papers with Sebi next week
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The National Stock Exchange's long-awaited IPO is finally gathering momentum, with India's largest bourse expected to file its draft red herring prospectus (DRHP) with Sebi next week, according to industry sources.
The country’s largest exchange is likely to submit IPO papers on June 15 or June 16, people familiar with the developments said.
In the unlisted market, NSE commands an estimated valuation of over ₹5 lakh crore, with its shares currently trading near ₹2,080 apiece. At this price, the exchange trades at a price-to-earnings (P/E) ratio of approximately 42.24, indicating strong investor interest ahead of the proposed public issue.
In February, NSE's board approved proceeding with the IPO through a pure offer-for-sale (OFS) route, enabling existing shareholders to partially monetise their holdings. The exchange had received a no-objection certificate (NOC) from Sebi in January this year, paving the way for the next phase of the listing process.
The exchange's ownership is widely distributed among domestic and global financial institutions, insurance companies, and individual investors, with no single shareholder holding a controlling stake.
Trading members, along with their associates and agents, collectively hold about 35.51% of NSE. Among domestic institutional investors, Life Insurance Corporation of India (LIC) owns 10.7%, followed by Stock Holding Corporation of India Ltd (4.4%), SBI Capital Markets (4.33%), and State Bank of India (3.23%). Other key shareholders include GIC, New India Assurance, and National Insurance Company.
Prominent foreign investors in the exchange include Aranda Investments (Temasek), Canada Pension Plan Investment Board (CPPIB), Morgan Stanley's MS Strategic Mauritius, and Crown Capital.
To manage the IPO process, NSE appointed 20 merchant bankers in March, including Kotak Mahindra Capital, JM Financial, Axis Capital, IIFL Capital Services, Motilal Oswal Investment Advisors, ICICI Securities, SBI Capital Markets, Nuvama Wealth Management, HDFC Bank, Avendus Capital, Morgan Stanley India, Citigroup Global Markets India, J.P. Morgan India, HSBC Securities and Capital Markets India, IDBI Capital Markets & Securities, 360 ONE WAM, Anand Rathi Advisors, DAM Capital Advisors, Pantomath Capital Advisors, and Equirus Capital.
The proposed IPO is being closely watched by the market, as NSE's earlier attempt to go public in 2016 was derailed by the co-location controversy. At the time, the exchange had planned to raise around ₹10,000 crore through an OFS of nearly 23% by existing shareholders, including Tiger Global Management, Aranda Investments, Elevation Capital, Norwest Venture Partners, Citigroup, Goldman Sachs, and SBI.