The National Stock Exchange of India (NSE) has taken a significant step towards its long-anticipated public listing, filing an updated draft red herring prospectus (UDRHP) with SEBI and the stock exchanges. This move, nearly a decade after the exchange first initiated the IPO process, reveals a revised issue size and changes in the offer-for-sale (OFS) structure.
Revised Issue Size and Offer-for-Sale Details
Sources indicate the NSE IPO is now expected to be valued at approximately Rs 23,000 crore, a notable reduction from the initial estimate of around Rs 30,000 crore outlined in its original DRHP filed in June. The entire offering will remain an offer-for-sale, meaning existing shareholders will sell their stakes, and the NSE itself will not receive any proceeds from the issue.
The updated filing reflects a smaller number of shares being offered compared to the original draft, which proposed the sale of 14.89 crore shares, representing about 6 percent of the exchange's equity. This reduction stems from several shareholders opting to sell fewer shares than initially planned.
Shareholders Reducing Stakes
Among the key entities that have scaled back their proposed stake sales are several public sector insurance companies. In the initial draft, General Insurance Corporation of India Ltd had planned to offer up to 1.066 crore shares, while New India Assurance Ltd proposed selling 1.05 crore shares. National Insurance Company and United India Insurance Company had each intended to sell 60 lakh shares.
Collectively, these four insurers had initially committed to selling approximately 3.37 crore NSE shares. Additionally, MS Strategic (Mauritius) Ltd, an entity linked to Morgan Stanley, has also reduced its planned offering from an original 1.60 crore shares.
Strong Investor Interest Despite Adjustments
Despite the adjustments in the offer-for-sale, the proposed listing continues to attract robust investor interest. Sources report that the institutional book has seen demand approaching Rs 85,000 crore, underscoring strong confidence from large investors in the NSE's market debut.
This updated filing marks a crucial milestone for the NSE as it navigates the final stages of a listing process that has spanned almost ten years, reflecting the complex regulatory and market dynamics involved.