The National Stock Exchange (NSE) is seeking a valuation of up to $55 billion for its proposed initial public offering (IPO), potentially making it one of the largest stock market listings in India, Bloomberg reported.
The exchange has been presenting its shares to potential investors at a price range of Rs 2,000–2,100 per share during investor meetings. At the upper end of this range, NSE’s valuation could reach approximately Rs 5.26 lakh crore.
NSE, which operates the world’s largest derivatives exchange by trading volume, has reportedly completed most of its international roadshow, with meetings in the Middle East still pending.
The IPO is now expected to launch in the second half of September after regulatory approval was delayed by around three weeks following changes to the list of shareholders selling shares.
NSE IPO COULD REACH $55 BILLION VALUATION
At the upper end of the indicated price range, NSE would be valued at around $55 billion, or roughly Rs 5.26 lakh crore.
According to Bloomberg, this would make the Indian exchange the sixth-largest global exchange operator by market capitalisation.
The proposed valuation highlights the enormous scale of the much-anticipated NSE IPO, which has faced several delays and regulatory obstacles over the years.
NSE has yet to announce the final issue price or the exact launch date.
IPO TO BE ENTIRELY AN OFFER FOR SALE
The NSE IPO will comprise only an offer for sale (OFS), meaning the exchange itself will not receive any proceeds from the share sale.
Existing shareholders are expected to sell up to 14.89 crore shares, representing roughly 6% of the company.
According to the report, NSE has appointed 20 banks to manage the proposed offering.
The final number of shares offered and the shareholders participating in the sale could influence the ultimate structure and valuation of the IPO.
WHY HAS THE NSE IPO FACED DELAYS?
The issue is now likely to come to the market in the second half of September after regulatory approval was pushed back by approximately three weeks.
The delay reportedly followed changes to the list of shareholders participating in the sale.
At the same time, NSE has made progress in resolving a long-running regulatory issue that had remained a major concern ahead of its planned listing.
The exchange had earlier disclosed that the Securities and Exchange Board of India (Sebi) had granted in-principle approval for settling certain past regulatory violations, subject to a payment of $155.83 million.
SEBI SETTLEMENT EASES MAJOR IPO CONCERN
NSE’s auditor disclosed in the exchange’s results report that Sebi had accepted the bourse’s proposed settlement in the long-running matter.
The case involved allegations of governance shortcomings and claims that NSE had failed to provide equal access to all trading members.
Resolving the matter is important for NSE as it moves towards a public listing, as it removes one of the key regulatory uncertainties surrounding the exchange.
With most of its global roadshow completed and the regulatory issue moving towards resolution, investor focus is now likely to turn towards the final IPO schedule, pricing and valuation.
NSE IPO: KEY DETAILS FOR INVESTORS
NSE is currently marketing its shares at Rs 2,000–2,100 apiece and seeking a valuation of up to $55 billion, or around Rs 5.26 lakh crore at the upper end.
The IPO is expected to launch during the second half of September, although the exact date has not been announced.
The issue will be entirely an OFS, with existing shareholders looking to sell up to 14.89 crore shares, equivalent to about 6% of NSE.
Twenty banks have been appointed to manage the offering, while the Sebi settlement has helped remove a significant regulatory hurdle ahead of the proposed listing.
