India’s largest stock exchange National Stock Exchange of India (NSE) has intensified preparations for its much-awaited IPO (Initial Public Offer). The exchange has selected 20 merchant banks and 8 law firms for this big share sale program. With the help of these institutions, NSE will take forward the process of listing in its stock market.
Large team of international and domestic banks
NSE has given the responsibility to many global and Indian investment banks to manage the IPO. These include Indian units of global companies like Morgan Stanley, Citigroup, JP Morgan Chase and HSBC. While domestic institutions include many names like Kotak Mahindra Capital, JM Financial, Axis Capital, IIFL Capital Services, Motilal Oswal Investment Advisors, ICICI Securities, SBI Capital Markets, Nuvama Wealth Management and HDFC Bank.
Who will play the lead role?
From the list of these 20 banks, two chief bankers will be selected in the next few weeks. Left lead and right lead. The left lead banker will decide the price of the IPO, structure the issue and oversee the entire process. Right Lead Banker will play an important role in connecting big investors and high net worth individuals.
How big can the IPO be?
According to initial estimates, this IPO can raise around 1.5 to 2.5 billion dollars (approximately ₹ 12,000 to ₹ 20,000 crore). According to reports, National Stock Exchange of India can sell about 4% to 4.5% stake through this offer.
According to NSE Chief Executive Officer Ashish Kumar Chauhan, it may take about 8 months to complete the IPO process.
Law firms also got responsibility
For this big deal, the exchange has appointed eight law firms like Cyril Amarchand Mangaldas, Khaitan & Company, Latham & Watkins, Sidley Austin, AZB & Partners, S&R Associates, Shardul Amarchand Mangaldas and Trilegal as advisors.
The process moved forward after a long wait
NSE’s IPO was stuck for almost a decade. But this process could move forward after receiving no objection from the Securities and Exchange Board of India (SEBI) in January this year. Now the market is hopeful that NSE listing may prove to be one of the biggest events in the Indian capital market in the coming times.