Mega NSE IPO coming as Sebi approves Rs 30,000 crore public offer

The National Stock Exchange’s long-awaited IPO, which is expected to raise around Rs 30,000 crore, has moved a step closer, with Sebi approving the exchange’s draft offer plan on Friday, according to the regulator’s website. The approval is a major step for one of India’s most closely tracked public issues and comes at a time when the IPO market has sharply revived after a dull first half.

NSE had filed its draft offer documents in June and has been preparing investor roadshows for what is expected to be one of the biggest IPOs of the year.

According to the DRHP, the IPO, with a face value of Rs 1, will entirely an offer-for-sale of up to 14.89 crore shares by SBI and other key existing investors.

The approval marks the ending of a listing process first attempted in December 2016, when NSE filed its first DRHP for a Rs 10,000-crore issue before the process was stalled by the co-location controversy.

The IPO structured entirely as an offer for sale means that the exchange itself will not raise any fresh capital. Instead, the proceeds will go entirely to existing shareholders who are looking to dilute a portion of their holding in the bourse.

The development also comes after the Supreme Court dismissed Sebi’s appeal against NSE in the co-location case, removing a key regulatory overhang for the exchange’s listing plans.
NSE currently trades in the unlisted market at around Rs 1,975-2,000 per share, implying a valuation of roughly Rs 5 lakh crore. That would make it one of the most valuable listed financial institutions in India once the public issue is completed.
More to come…