Leading stock exchange National Stock Exchange of India Ltd has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The proposed initial share sale will be solely an offer-for-sale (OFS) of 14.89 crore shares.
Under the OFS, corporate selling shareholders State Bank of India, MS Strategic (Mauritius) Limited, Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte Ltd, Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India, The New India Assurance Company, National Insurance Company and United India Insurance Company will offload their stakes.
Meanwhile, Life Insurance Corporation of India, which holds 10.72% stake in NSE, will not sell any shares.
“Our company expects that listing of the equity shares will enhance our visibility and brand image, provide liquidity to our shareholders and will also provide a public market for the equity shares in India,” the preliminary papers said.
Since there is no fresh issue component, the exchange will not get any proceeds from the IPO. The money raised will go to the selling shareholders.
The IPO size is estimated to be close to ₹30,000 crore based on the exchange’s valuation in the unlisted market, news agency PTI reported citing people familiar with the matter.
The filing is a major milestone for NSE, whose listing plans were stuck for nearly a decade due to regulatory hurdles, including the co-location controversy.
NSE is the largest domestic stock exchange in terms of total turnover in the cash market and total turnover in equity derivatives (based on notional turnover for equity options) from the financial year 2000-01 to FY26.
Kotak Mahindra Capital Company, Morgan Stanley India Company, HSBC Securities and Capital Markets, SBI Capital Markets, Avendus Capital, DAM Capital Advisors, HDFC Bank, IDBI Capital Markets & Securities, Motilal Oswal Investment Advisors, Pantomath Capital Advisors, JM Financial, Citigroup Global Markets India, JP Morgan India, Anand Rathi Advisors, Axis Capital, Equirus Capital, ICICI Securities, IIFL Capital Services, Nuvama Wealth Management and 360 ONE WAM are the issue’s book-running lead managers.