NSE IPO priced at ₹1,700-1,785; issue opens September 17
What's the story
The National Stock Exchange (NSE) has announced the price band for its initial public offering (IPO). The issue will open for subscription on September 17 and close on September 21. The exchange has set the IPO price band at ₹1,700 to ₹1,785 per share with a face value of ₹1 per share. Each lot will consist of eight shares.
Application process
How much will it cost to apply?
To apply for one lot of the NSE IPO, retail investors will have to invest a minimum of ₹14,280. Further bids can be made in multiples of eight shares.
The issue is entirely an Offer for Sale (OFS), meaning that the NSE itself will not receive any money from the sale of shares.
At the upper end of the price band, NSE's IPO will be worth ₹22,561.57 crore.
Share distribution
Market cap of NSE to reach ₹4.41 lakh crore
The share allocation for the IPO is 35% for retail investors, 50% for qualified institutional bidders (QIBs), and the remaining portion for non-institutional investors (NIIs).
At the upper end of the price band, NSE will have a market capitalization of ₹4.41 lakh crore.
Eligible employees applying in this IPO will get a discount of ₹170 per share on the final issue price.
The exchange has reserved shares worth up to ₹70 crore for its employees.
Important dates
IPO allotment details
The allotment for eligible shareholders will be finalized by September 22. The shares will be credited to the demat accounts of eligible shareholders on September 23.
They are expected to begin trading on the Bombay Stock Exchange (BSE) on September 24.
NSE has reduced its proposed IPO offer size by around 15%, with several shareholders cutting their selling share quantities, according to the red herring prospectus (RHP) filed on September 10.
Share sale
Who are the selling shareholders?
The selling shareholders in the offer for sale include SBI, Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte. Ltd, MS Strategic Mauritius Ltd., and New India Assurance.
Other names including SBI Capital Markets, Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India, and United India Insurance Company.