NSE IPO: India’s largest exchange likely to file DRHP with Sebi by second week of June

The highly anticipated initial public offering (IPO) of National Stock Exchange (NSE) is set to hit Dalal Street soon, with the country’s largest exchange gearing up to file its draft red herring prospectus (DRHP) with the capital market regulator.

According to an industry source, the NSE is likely to file its IPO papers with the Securities and Exchange Board of India (Sebi) by the second week of June.

“The exchange and bankers have decided to go ahead with the DRHP filing by the end of the first week or in the early part of the second week of June,” the source told Fortune India.

The source added that the decision was taken during the first joint meeting with all 20 appointed investment bankers last week. The NSE did not comment on the matter.

In February, NSE’s board approved proceeding with the IPO through a pure offer for sale (OFS) by existing shareholders. The exchange is owned by a mix of 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 own around 35.51% in NSE. Among domestic institutional investors, Life Insurance Corporation of India holds 10.7%, followed by Stock Holding Corporation of India Ltd. (4.4%), SBI Capital Markets (4.33%), and State Bank of India with 3.23%. Other notable shareholders include GIC, New India Assurance, and National Insurance.

Foreign investors with significant stakes include Aranda Investments (Temasek), Canada Pension Plan Investment Board (CPPIB), Morgan Stanley’s MS Strategic Mauritius, and Crown Capital.

In March, the exchange appointed 20 merchant bankers for the proposed IPO, 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.

Earlier in January this year, NSE had received a no-objection certificate (NOC) from Sebi for the listing process.

The exchange has also appointed eight legal advisors, including Cyril Amarchand Mangaldas, Khaitan & Co, Latham & Watkins LLP, Sidley Austin Singapore, AZB & Partners, S&R Associates, Shardul Amarchand Mangaldas & Co, and Trilegal.

Other intermediaries include MUFG Intime India, Makarand M Joshi & Company, Manian & Rao, RBSA Advisors, Concept Communication, and Redseer Strategy Consultants. Rothschild & Co India, which acted as the process advisor for selecting IPO intermediaries, has completed its mandate.

The IPO is being closely watched as NSE’s earlier listing attempt in 2016 was shelved following the co-location controversy. At the time, the exchange had reportedly 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.

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