NSE IPO Closer: Sebi Approves ₹1,491 Cr Settlement
By ThePip Desk
NSE inches closer to its IPO launch after Sebi approves a ₹1,491.21 crore settlement for co-location cases, paving the way for a potential September listing.
The National Stock Exchange of India (NSE) has received in-principle approval from the Securities and Exchange Board of India (Sebi) to settle long-standing co-location and dark fibre cases. This significant regulatory development moves the exchange closer to its anticipated Initial Public Offering (IPO).
The agreed settlement amount stands at ₹1,491.21 crore. This sum comprises ₹714.74 crore to be paid by NSE, alongside an adjustment of ₹776.47 crore already deposited with the regulator. The resolution effectively removes a major regulatory obstacle that had impeded NSE’s listing plans since investigations commenced in 2015.
IPO Details and Valuation
Industry sources indicate that NSE targets launching its IPO as early as September. The public issue is projected to be approximately ₹30,000 crore, potentially valuing the exchange at over ₹5 lakh crore. Investor roadshows are expected to begin shortly.
The Draft Red Herring Prospectus (DRHP), initially filed in June, specifies that the IPO will solely constitute an Offer for Sale (OFS). This involves 14.89 crore equity shares, representing nearly a 6% dilution of NSE’s equity by its existing shareholders.
Key Selling Shareholders
Several prominent shareholders are participating in the OFS. State Bank of India (SBI) plans to offload up to 2.48 crore shares. MS Strategic (Mauritius) intends to sell around 1.6 crore shares. Canada Pension Plan Investment Board (CPPIB) will divest nearly 1.19 crore shares.
Other entities participating include Aranda Investments (Mauritius), Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India (GIC Re), New India Assurance, National Insurance Company, and United India Insurance Company. Notably, Life Insurance Corporation of India (LIC), a major shareholder, will not participate in this IPO.
Allocation for Investors
The net offer features a specific reservation structure for different investor categories. Half of the offer, 50%, is reserved for Qualified Institutional Buyers (QIBs). Non-Institutional Investors (NIIs) have a 15% reservation. Retail investors are allocated 35% of the offer. An additional 5% of the offer is reserved for eligible employees.
The resolution of these protracted regulatory issues marks a pivotal moment, significantly advancing NSE’s path toward a public listing in the Indian market.