NSE IPO: SEBI Close To Approving Draft Prospectus

The much-awaited initial public offering (IPO) of the National Stock Exchange of India (NSE) could be closer to launch, with Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey saying the market regulator is close to approving the exchange’s draft red herring prospectus (DRHP).

NSE filed its draft prospectus in June for an offer that will comprise only secondary share sales. Existing shareholders plan to sell up to 148.9 million shares, or about 6% of the exchange, according to the filing.

The development comes after the approval timeline was pushed back by around three weeks following changes to the list of shareholders selling shares in the IPO.

SBI Capital Markets Added To Selling Shareholders

State Bank of India, MS Strategic (Mauritius) Ltd, Canada Pension Plan Investment Board and Aranda Investments (Mauritius) Pte Ltd are among the shareholders planning to sell shares in the NSE IPO. Other selling shareholders include:

• Bank of Baroda

• Stock Holding Corporation of India Ltd.

• General Insurance Corporation of India

• The New India Assurance Company Ltd.

• National Insurance Company Ltd.

• United India Insurance Company Ltd.

SBI Capital Markets Ltd. was added to the list of selling shareholders, which led to the delay in the expected SEBI approval. NSE had earlier expected the regulator to clear its draft prospectus by early August.

NSE IPO Valuation Could Reach ₹5.26 Lakh Crore

Earlier this month, a Bloomberg report said NSE is seeking a valuation of as much as ₹5.26 lakh crore ($55 billion) for the proposed IPO.

The exchange has also held meetings with large global investors ahead of the offering. According to people familiar with the matter cited in the report, NSE met around 120 global investors across Boston, New York, San Francisco, London, Singapore and Hong Kong.

The investor meetings included firms such as BlackRock Inc., Capital Group, GQG Partners, Janus Henderson Group Plc and Allspring Global Investments. NSE operates the world’s largest derivatives exchange by trading volume.

NSE Could Rank Among Top Global Exchanges

At the upper end of the reported valuation range, NSE could rank sixth among global exchange operators by market value. It would sit narrowly behind London Stock Exchange Group Plc and just ahead of Nasdaq Inc.

CME Group Inc. and Intercontinental Exchange Inc. currently lead the group, with market values of about $97 billion and $86.9 billion, respectively.

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