NSE IPO gets SEBI nod, may eye listing by September end

The decks have been cleared for what may be the country’s biggest-ever listing, as the markets regulator has approved the estimated Rs 30,000 crore IPO of the National Stock Exchange (NSE), over two months after it filed the papers, and about a decade after it first tried to hit the primary market.

The country’s largest stock exchange may get listed as soon as this month, reports suggested. The approval clears a key regulatory hurdle for the exchange after it had first filed its IPO papers back in June. The price band for the issue is likely to be announced on September 15, with plans to list in the week starting September 21, Reuters reported, citing unnamed sources.

The unlisted market indicates a valuation of around Rs 5 lakh crore for the exchange. The valuation and the amount raised now depend on the price band of the issue. Rival BSE had raised Rs 1,243.43 crore through its public issue back in 2017.

The stock has since gained nearly 29 times from its listing price, becoming among the most lucrative stocks in the market. It will also be interesting to see if the regulator allows NSE’s shares to trade on its own exchange through the “permitted-to-trade” route.

The issue will entirely be an offer for sale (OFS) of 14.89 crore shares, representing around 6% of the exchange’s stake. Funds raised via OFS are pocketed by selling shareholders and are not utilised in a company’s business.

SBI will offload up to 2.48 crore shares in the OFS. MS Strategic (Mauritius) will sell up to 1.6 crore shares. Other major listed entities offloading some of their stakes include Bank of Baroda, General Insurance Company of India, and the New India Assurance Company.

Shares of many of these companies have skyrocketed in the run-up to the issue. For example, shares of New India Assurance shot up over 18% on Friday. In fact, the stock has gained 34% over just a month. Having bought shares early on at an average cost of under a rupee, the IPO, which targets high valuations, is expected to unlock significant cash for the likes of SBI, Bank of Baroda, and the insurance companies.