NSE IPO Filing Plans Progress, Expected to be Filed with SEBI Next Week

The long-awaited initial public offering (IPO) of the National Stock Exchange (NSE) is set to move a step closer, with the country’s largest stock exchange expected to file its preliminary papers with SEBI next week, people aware of the matter said.

NSE IPO Approval and Filing Plans

The public issue will be entirely an offer for sale (OFS), with no fresh issue component. According to people familiar with the development, the draft red herring prospectus (DRHP) is likely to be filed on June 15 or June 16.

The exchange has a broad-based shareholder base comprising domestic financial institutions, insurance companies, foreign investors, and individual shareholders. Life Insurance Corporation of India (LIC) is the single largest shareholder in NSE, holding a 10.72 per cent stake.

Key Shareholders and Stakeholders

State Bank of India (SBI) and its subsidiary, SBI Capital Markets, together own around a 7.5 per cent stake in the exchange. Among foreign investors with significant holdings are Aranda Investments, a subsidiary of Temasek, and Canada Pension Plan Investment Board (CPPIB).

Market Impact and Details

The filing would mark a major milestone for NSE, whose listing plans had remained on hold for nearly a decade due to regulatory issues, including the co-location controversy.
The proposed issue is expected to be among the largest in India’s capital markets. NSE, which has around 1.8 lakh shareholders, is valued at over ₹5 lakh crore in the unlisted market, according to market participants.
NSE had first filed draft offer documents in 2016 to raise around Rs 10,000 crore through an offer for sale by existing shareholders. However, SEBI withheld approval amid concerns related to governance lapses and the co-location case.

Key Takeaways

The NSE IPO is expected to be filed with SEBI next week, marking a major milestone for the exchange.
The public issue will be entirely an offer for sale (OFS), with no fresh issue component.
The proposed issue is expected to be among the largest in India’s capital markets.

FAQs

What is the status of NSE’s IPO plans?

The IPO plans have been pending for nearly a decade due to regulatory issues, including the co-location controversy. However, SEBI granted an NOC to NSE in January, paving the way for the exchange to revive its IPO plans.

Who are the key shareholders in NSE?

Life Insurance Corporation of India (LIC) is the single largest shareholder in NSE, holding a 10.72 per cent stake. State Bank of India (SBI) and its subsidiary, SBI Capital Markets, together own around a 7.5 per cent stake in the exchange.

What is the expected size of the NSE IPO?

The proposed issue is expected to be among the largest in India’s capital markets. NSE, which has around 1.8 lakh shareholders, is valued at over ₹5 lakh crore in the unlisted market, according to market participants.

Conclusion

The long-awaited NSE IPO is set to move a step closer, with the country’s largest stock exchange expected to file its preliminary papers with SEBI next week. The public issue will be entirely an offer for sale (OFS), with no fresh issue component. As the IPO plans progress, investors and stakeholders will be closely watching the developments. With the proposed issue expected to be among the largest in India’s capital markets, the NSE IPO is set to make a significant impact on the country’s capital markets.