NSE IPO Moves Closer As SEBI Issues Observations On Draft Papers; Response Awaited
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SEBI has issued observations on NSE's draft IPO papers and is awaiting a response from lead managers before finalising its view, following recent progress including a co-location settlement and the exchange's board approval for the offer-for-sale of about 6% of its paid-up capital.
The National Stock Exchange's (NSE) proposed initial public offering (IPO) has moved another step forward, with the Securities and Exchange Board of India (SEBI) issuing observations on the exchange's draft papers, according to a Business Line report.
The regulator is now awaiting a response from NSE and its appointed lead managers before taking a final view on the proposed share sale, the report said.
The development comes a day after SEBI Chairman Tuhin Kanta Pandey said the regulator was close to approving NSE's draft papers, indicating further progress on an IPO process that has been delayed for nearly a decade.
NSE had filed its draft red herring prospectus (DRHP) with SEBI in June for an offer-for-sale (OFS) of up to 148.9 million equity shares, with a face value of Re 1 each. The proposed issue represents around 6% of NSE's paid-up capital.
There is no fresh issue component in the IPO. All proceeds from the share sale will go to the existing selling shareholders.
SEBI Observations On NSE IPO
SEBI's observations are part of the regulatory review of NSE's draft papers. According to the Business Line report, NSE and its merchant bankers are expected to submit their response before the regulator takes a final decision on the NSE IPO proposal.
The exchange's public listing plans have been pending for years because of regulatory issues, including cases related to its co-location and dark fibre arrangements.
The IPO process gained momentum earlier this year after NSE received a no-objection certificate from SEBI. Following the clearance, the exchange's board approved the proposed IPO.
Last month, SEBI also agreed in principle to settle applications filed by NSE in the co-location and dark fibre matters for ₹1,491.21 crore. The settlement was another development that helped move the exchange's long-delayed listing plans forward.
NSE is currently estimated to have a valuation of around ₹5 lakh crore in the unlisted market, according to the report.
NSE Explores PTT Route
Alongside the IPO process, reports have said NSE is exploring the 'Permitted to Trade' (PTT) route.
Under the proposal, NSE shares could potentially be traded on the NSE while the company remains formally listed on the BSE.
The reported move comes as the exchange continues to work through the final stages of its listing process. However, the immediate focus remains on SEBI's review of the draft papers and the response from NSE and its lead managers.
The latest observations indicate that the regulatory process is progressing, but a final approval from SEBI is still awaited.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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