NSE to slash IPO price range to ₹1,700-1,785
What's the story
The National Stock Exchange of India (NSE) is likely to price its long-awaited initial public offering (IPO) at ₹1,700-1,785 per share, according to a Bloomberg report. The new range is lower than the earlier proposed range of ₹2,000-2,100. The exchange may also reduce the stake on offer to 5.5% from an originally planned 6%. This comes after some shareholders opted out of selling their stakes at the revised price.
Financial implications
Deal would still be one of India's largest IPOs
At the upper end of the new price range, a 5.5% stake sale would raise some ₹24,300 crore.
This is lower than Hyundai Motor India's record ₹27,900 crore raised in 2024 through India's largest-ever IPO.
The revised valuation for NSE would be as much as ₹4.42 lakh crore, down from a previously targeted ₹5.26 lakh crore.
Market dynamics
Downsizing reflects primary market's challenges with multiple large deals
The downsizing of the deal mirrors concerns over India's primary market's capacity to handle multiple large deals simultaneously.
This comes as Jio Platforms Ltd. is also moving toward a potential mega-IPO later this year.
NSE's decision also comes amid a slowdown in growth and increased regulatory scrutiny of stock-market activity.
Options trading, a major contributor to the exchange's success, has been affected by government measures like doubling transaction tax on some derivatives and proposing higher short-term capital gains tax rates.
Future prospects
NSE would remain one of the world's largest exchanges
Despite the downsized deal, NSE would still be valued at about 43.4 times earnings in the previous fiscal year. This makes it one of the most expensive among the world's 10 largest listed exchanges.
At $46.6 billion, it would be the eighth-largest stock exchange in the world by market value.
The company is expected to announce its official price range this week and open its IPO for subscription in mid-September.