NSE Sets September 17 for IPO Launch, Targets Up to Rs 22,567 Crore

The National Stock Exchange (NSE) is set to open its much-anticipated initial public offering (IPO) for subscription on September 17, marking a major step towards the stock exchange’s long-delayed public listing nearly a decade after its earlier plans were stalled.

According to the red herring prospectus (RHP), the three-day IPO will close on September 21, while bidding by anchor investors will take place on September 16. The exchange is expected to announce the price band on Friday.

The IPO will comprise an offer for sale (OFS) of up to 12.64 crore equity shares by existing shareholders. This is lower than the 14.9 crore shares proposed earlier, reducing the overall issue size from the initial estimate of around Rs 30,000 crore.

At an indicative price band of Rs 1,700-1,785 per share, the issue could be valued at approximately Rs 21,494 crore to Rs 22,567 crore, according to sources.

The offering is unlikely to surpass Hyundai Motor India’s Rs 27,870-crore IPO, which remains the largest public issue in India. However, the NSE IPO would exceed the Rs 21,000-crore LIC issue launched in 2022, potentially making it the country’s second-largest public offering.

The RHP shows that several shareholders have scaled back their proposed stake sales. State Bank of India (SBI) has reduced its OFS to around 1.60 crore shares from 2.47 crore, while MS Strategic (Mauritius) Ltd has cut its offering to 1.1 crore shares from 1.6 crore shares.

Bank of Baroda, Stock Holding Corporation of India and General Insurance Corporation of India have also reduced their proposed share sales. SBI Capital Markets Ltd has been added as a new selling shareholder.

As the issue is entirely an OFS, the proceeds will go to the selling shareholders and not to NSE.

Markets regulator Sebi last week cleared NSE’s IPO, removing a key hurdle for its long-awaited listing. The exchange’s earlier plans had been held up amid regulatory issues, including the co-location controversy.