NSE Seeks Valuation Of Up To ₹5.26 Lakh Crore In Record IPO
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The National Stock Exchange of India is seeking a valuation of up to ₹5.26 lakh crore in its planned initial public offering, having marketed its shares to global investors at ₹2,000-2,100 apiece, according to people familiar with the matter. Read on to know more.
The National Stock Exchange of India (NSE), operator of the world's largest derivatives exchange by trading volume, is seeking a valuation of up to ₹5.26 lakh crore in its planned initial public offering, according to people familiar with the matter.
The exchange has marketed its shares in a price range of ₹2,000 to ₹2,100 apiece during meetings with potential investors, the people said, requesting anonymity as the information is private. NSE has concluded most of its global roadshow, with meetings in the Middle East still pending.
Extensive Global Roadshow Ahead Of Listing
According to people aware of the NSE IPO matter, deliberations remain ongoing and details of the offering could still change. A representative for NSE declined to comment beyond reiterating that the company has filed a draft prospectus with India's market regulator.
India's largest stock exchange has held investor meetings across Boston, New York, San Francisco, London, Singapore and Hong Kong, engaging with around 120 large global investors, including BlackRock, Capital Group, GQG Partners, Janus Henderson Group and Allspring Global Investments, among others.
Timeline Pushed Back By Three Weeks
NSE had expected SEBI's approval of its draft prospectus by early August, but the approval timeline has been delayed by around three weeks after changes to the list of selling shareholders, with SBI Capital Markets added to the roster. Since changes to initial public offering (IPO) documents require a 21-day public feedback window, the offering is now expected to launch in the second half of September, according to people familiar with the matter.
Comparison With Global Exchange Operators
At the top end of the indicated valuation range, NSE would rank sixth by market value among global exchange operators, narrowly behind London Stock Exchange Group and just ahead of Nasdaq. CME Group and Intercontinental Exchange currently lead the list and are valued at around $97 billion and $86.9 billion, respectively.
Offer Structure And Advisers
NSE filed its draft prospectus in June for an offering that will consist entirely of secondary share sales, with existing shareholders planning to sell up to 148.9 million shares, representing about 6% of the company. The exchange has appointed 20 banks to manage the share sale, including Kotak Mahindra Capital, JM Financial, Morgan Stanley, HSBC Holdings and Citigroup.
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