NSE IPO Draws Strong Institutional Demand, Valuation Set at ₹4.42 Lakh Crore

The National Stock Exchange (NSE) is set to launch its ₹22,569-crore initial public offering (IPO), which will become India’s second-largest public issue after Hyundai Motor India’s ₹27,870-crore offering in 2024.

NSE Managing Director and CEO Ashishkumar Chauhan said on Tuesday that demand for the exchange’s anchor book was much higher than expected. Bidding for anchor investors will take place on September 16.

The anchor book is expected to be around ₹6,250 crore, with the final investor line-up still being worked out, Chauhan said. Investment majors including Goldman Sachs Asset Management, Franklin Templeton and Fidelity International were among early investors showing interest, according to people familiar with the matter.

Norges Bank Investment Management, Abu Dhabi Investment Authority and GIC are also likely to participate in the anchor book bidding, they said.

Chauhan said NSE would have to distribute shares among different categories of institutional investors under the applicable reservation framework, including domestic mutual funds, other institutions and foreign investors.

The IPO is structured entirely as an Offer for Sale (OFS). The issue is scheduled to open for public subscription on September 17 and close on September 21. The price band has been fixed at ₹1,700 to ₹1,785 per share, while the shares are expected to list on September 24.

At the upper end of the price band, NSE will be valued at around ₹4.42 lakh crore.

Chauhan said the exchange has not applied for a permitted-to-trade category for its shares so far and would consult the Securities and Exchange Board of India (Sebi) if it decides to pursue the option.

He also said NSE would have 100 per cent free float after listing, given its shareholder base of around two lakh.

On market activity, Chauhan said growth in trading volumes would depend partly on broader market conditions. He noted that Indian markets had remained relatively sideways over the past two-three years, while geopolitical developments and changes in the global environment had also affected trading activity.

The NSE IPO is expected to be India’s second-largest public issue, according to the company’s planned issue size.