The much-awaited IPO of the National Stock Exchange (NSE) is inching closer, with reports indicating that the bourse could file its draft red herring prospectus (DRHP) as early as Wednesday, June 17.
Multiple news outlets have reported that India’s largest stock exchange will file its DRHP today.
Meanwhile, amid expectations that the long-awaited NSE IPO could hit the market soon, shares of BSE came under pressure. The stock declined as much as 4% to ₹3,995.10 on the NSE during Wednesday’s session.
Most probably, NSE shares will be listed on the BSE.
Key things to know about the NSE IPO
According to a recent PTI report, the proposed NSE public issue will be entirely an offer for sale (OFS), with no fresh issue of shares.
The exchange has a broad-based shareholder base comprising domestic financial institutions, insurance companies, foreign investors, and individual shareholders.
Details to know
Life Insurance Corporation of India (LIC) is the single largest shareholder in NSE, holding a 10.72% stake. State Bank of India (SBI) and its subsidiary, SBI Capital Markets, together own around a 7.5% stake in the exchange.
Among foreign investors with significant holdings are Aranda Investments, a subsidiary of Temasek, and Canada Pension Plan Investment Board (CPPIB).
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.
NOC to NSE
In January, SEBI granted an NOC to NSE, paving the way for the exchange to revive its IPO plans.
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 ₹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.
Since then, the exchange has made multiple representations to the regulator seeking clearance and has undertaken various governance and compliance measures.