NSE IPO to raise ₹30,000cr, valuation could touch ₹5 trillion
What's the story
The National Stock Exchange (NSE) is gearing up for its initial public offering (IPO), which could raise as much as ₹30,000 crore. The move would involve a 6% stake dilution, giving the exchange a whopping ₹5 lakh crore valuation, according to CNBC-TV18. The Securities and Exchange Board of India (SEBI) recently approved the NSE IPO.
Upcoming events
NSE IPO details
NSE is likely to announce its price band on September 11 and plans to list on September 25.
The IPO will be an offer-for-sale (OFS) of up to 149 million equity shares by existing institutional shareholders, representing around 6% of NSE's paid-up equity capital.
No fresh shares will be issued by the exchange in this process.
Shareholders
List of public sector shareholders in NSE IPO
The list of selling shareholders in the NSE IPO includes several public sector companies, private equity players, and investment banking firms.
Among them are State Bank of India (SBI), Bank of Baroda, StockHolding Corporation of India, Indian Bank, GIC Re, New India Assurance, United India Assurance, National Insurance, and Oriental Insurance.
Private stakeholders
Private sector shareholders in NSE IPO
The private sector shareholders likely selling their stake in the NSE IPO include Morgan Stanley, CPPIB, Temasek, Crown Capital, OMERS, ChrysCap, ICICI Lombard, and TA Associates.
Life Insurance Corporation (LIC) holds a 10.7% stake in NSE, while StockHolding Corp., SBI Capital, and SBI hold 4.4%, 4.3%, and 3.2% stakes, respectively.
GIC holds a 1.64% stake with Oriental Bank and New India Assurance each having a 1.42% stake in NSE.
Market impact
Proposed NSE IPO to surpass Hyundai Motor India issue
The final issue size and valuation of the NSE IPO are yet to be finalized, but market estimates suggest it could be around ₹30,000 crore.
If that happens, NSE could have a market capitalization of over ₹5 lakh crore. This would make it one of India's top 10 most valuable listed companies by market value.
The proposed IPO would surpass Hyundai Motor India's ₹27,859 crore issue and LIC's ₹20,557 crore offering.