New Delhi: The National Stock Exchange (NSE) will open its much-awaited initial public offering (IPO) for subscription on September 17, taking a major step towards its stock market listing after nearly a decade of delays.
The three-day public issue will close on September 21, while bidding for anchor investors is scheduled for September 16, according to the red herring prospectus (RHP). The exchange is expected to announce the price band on Friday.
OFS Size Reduced
The IPO will comprise an offer for sale (OFS) of up to 12.64 crore equity shares by existing shareholders, lower than the 14.9 crore shares proposed earlier.
The reduction has also lowered the expected size of the public issue from the initial estimate of around ₹30,000 crore.
At an indicative price range of ₹1,700-₹1,785 per share, the IPO could be worth around ₹21,494 crore to ₹22,567 crore, according to sources.
This means NSE may fall short of becoming India’s biggest IPO. Hyundai Motor India’s ₹27,870 crore offering currently holds the record. However, NSE could still surpass Life Insurance Corporation of India’s ₹21,000 crore IPO launched in 2022.
SBI Cuts Share Sale
Several existing NSE shareholders have reduced the number of shares they plan to sell.
State Bank of India has lowered its proposed sale to around 1.60 crore shares from 2.47 crore shares. MS Strategic (Mauritius) Ltd has reduced its offer to 1.1 crore shares from 1.6 crore shares.
Bank of Baroda, Stock Holding Corporation of India Ltd and General Insurance Corporation of India have also lowered their proposed share sales. SBI Capital Markets Ltd has joined as a new selling shareholder.
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Since the IPO is entirely an OFS, NSE will not receive any proceeds from the offering. The money raised will go to the selling shareholders.
Listing Plan Moves Forward
Markets regulator Sebi last week cleared NSE to proceed with the IPO, removing a major hurdle for the exchange.
NSE’s listing plans had remained stalled for nearly a decade amid regulatory issues, including the co-location controversy.
