NSE's ₹30,000cr IPO gets SEBI nod
What's the story
The Securities and Exchange Board of India(SEBI) has approved the initial public offering (IPO) of the National Stock Exchange (NSE). The approval comes nearly a decade after NSE's earlier listing plans were stalled by regulatory issues. With this new development, NSE is expected to finalize its IPO process and list its shares on the Bombay Stock Exchange (BSE) later this month.
Market impact
Issue estimated to be worth around ₹30,000 crore
The upcoming IPO will be fully an offer for sale (OFS), with existing shareholders looking to sell up to 14.89 crore equity shares, nearly 6% of NSE's paid-up capital.
The issue is estimated to be worth around ₹30,000 crore based on the unlisted-market valuation of NSE at the time of filing its DRHP.
The listing will be a major milestone for India's capital markets and give investors a direct avenue to own shares in the country's largest stock exchange.
Share distribution
Major sellers in the upcoming IPO
The SBI Group is the largest selling shareholder in NSE's IPO, planning to sell up to 2.475 crore shares.
Other major sellers include MS Strategic (Mauritius) Ltd with 1.60 crore shares; Canada Pension Plan Investment Board (CPPIB) with 1.19 crore shares; Aranda Investments (Mauritius) Pte Ltd with 1.12 crore shares; Bank of Baroda with around 1.10 crore shares, and Stock Holding Corporation of India Ltd with around 1.09 crore shares.
Potential record
NSE's IPO could surpass Hyundai Motor India's issue
At an indicative valuation of around ₹5 lakh crore, NSE's ₹30,000cr IPO could be India's largest, surpassing Hyundai Motor India's ₹27,870 crore issue in 2024.
However, the final issue size and valuation will depend on the price band set ahead of the IPO.
The move comes as a major step toward making India's capital markets more accessible to investors.