NSE plans to file IPO documents by March-end
What's the story
The National Stock Exchange of India (NSE), the country's largest stock exchange, is gearing up to file its draft prospectus for a much-anticipated public listing by the end of March. The move comes after years of delay due to regulatory investigations and pending approvals. NSE is currently in talks with investment bankers and law firms to finalize the prospectus and assess investor interest in what could be one of India's biggest initial public offerings (IPOs).
Market value
Valuation and regulatory approval
While NSE has not revealed how much of its equity it intends to offer, a platform trading the exchange's unlisted shares values it at $55 billion. The formal appointment of bankers and lawyers will come after receiving a no-objection certificate from the Securities and Exchange Board of India (SEBI). SEBI chairperson recently said that the regulator could possibly approve NSE's listing this month.
Listing delay
NSE's journey to listing: A long wait
NSE, which is also the world's most active derivatives exchange, has been trying to list since 2016. The process has been delayed due to regulatory investigations into its fair market access practices for traders using co-location facilities. The case is still pending in India's Supreme Court. Last year, NSE had offered a ₹1,387 crore settlement over the matter and SEBI is still considering it.
Market activity
Unlisted shares and shareholder base
Ahead of the public issue, NSE's unlisted shares are trading at over ₹2,000 apiece. This values the exchange at ₹5 lakh crore or $55 billion. Pre-listing, NSE has 1,77,807 shareholders making it India's largest unlisted company by number of investors. Lawyers drafting the IPO documents are working on mechanisms to ensure fair exit opportunities for this large shareholder base with preference likely given to banks and foreign institutions that have held NSE shares for a long time.