- NSE anticipates announcing its IPO price range this week.
- Proposed valuation significantly lower; stake sale shrunk to 5.5%.
- IPO structured entirely as an Offer For Sale, regulator approved.
The National Stock Exchange of India Ltd. (NSE) is finally moving closer to its much-awaited stock market debut, with the exchange expected to announce its IPO price range this week reported Bloomberg, citing people familiar with the matter.
The issue could open for subscription in the week beginning September 14, the report said. However, discussions are still ongoing and both the pricing and launch schedule could change.
Proposed Valuation Could Be Lower Than Earlier Target
NSE is considering a price band of Rs 1,700-Rs 1,785 per share, the report noted.
At Rs 1,785 per share, the exchange would have a valuation of around Rs 4.42 lakh crore ($46.6 billion). This is below the valuation of up to Rs 5.26 lakh crore that had previously been targeted based on an earlier indicated price range of Rs 2,000-Rs 2,100 per share.
The lower proposed price comes as the structure of the share sale is also being reconsidered.
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Stake Sale May Shrink To 5.5 per cent
NSE could offer around 5.5 per cent of its total equity in the IPO, rather than the 6 per cent stake originally planned, the media agency said.
Some existing shareholders have opted out of selling their holdings at the lower proposed valuation.
If a 5.5 per cent stake is sold at the upper end of the proposed price range, the offering could raise around Rs 24,300 crore.
That would still fall short of the Rs 27,900 crore raised by Hyundai Motor India Ltd. in 2024, which holds the record for India’s largest IPO by issue size.
What Is The NSE IPO Structure?
Unlike a conventional IPO involving newly issued shares, the NSE offering is planned entirely as an offer for sale (OFS).
This means existing shareholders will sell part of their holdings, with the proceeds going to those selling shareholders rather than being raised through a fresh issue of shares by NSE.
The exchange submitted its draft prospectus in June. India’s market regulator approved the IPO prospectus on September 4, bringing the proposed listing closer to launch.
Who Are The NSE IPO Selling Shareholders?
The proposed offer includes stakes from several existing shareholders.
The NSE filing names Morgan Stanley, Temasek Holdings Pte, State Bank of India, Stock Holding Corporation of India Ltd., General Insurance Corp. of India, New India Assurance Co. Ltd., National Insurance Co. Ltd. and Oriental Insurance Co. among those selling shares.
The final composition of the offer could change before the IPO opens, given that discussions around the pricing and stake sale are continuing.
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Why The NSE IPO Is Being Closely Watched
NSE operates one of the world’s largest derivatives exchanges by trading volume. Its proposed public offering has been in the works for several years, making the pricing and eventual issue size key details for prospective investors.
For now, the exchange is expected to disclose the price band this week, while the IPO could open in the week starting September 14, subject to final decisions.
