The highly anticipated initial public offering (IPO) of the National Stock Exchange (NSE) is provisionally set to open for public subscription on September 18. This significant market event, which has no official calendar announcement from the bourse yet, is expected to see the NSE stock list on September 25.
Revised IPO Details Emerge
According to recent reports, the price band for what is poised to be one of India's largest IPOs is anticipated to be revealed on September 15. The anchor book is slated for September 17, with the public issue likely remaining open on September 18, 21, and 22.
A Bloomberg report indicates a reduction in the stake offered, now likely around 5.5% of the total equity capital, down from the initially planned 6%. This adjustment comes as some shareholders reportedly backed out of selling their stakes at a lower price point.
Valuation and Market Absorption Concerns
The revised stake sale of 5.5% is projected to raise approximately Rs 24,300 crore, valuing the NSE at up to Rs 4.42 lakh crore. This is a notable shift from the previously targeted valuation of as much as Rs 5.26 lakh crore. Furthermore, the price range for the IPO has been lowered to Rs 1,700 per share, from an earlier Rs 1,785 apiece.
The reduction in the deal size is attributed to growing concerns regarding the Indian primary market’s capacity to absorb several large transactions simultaneously, especially with other major IPOs like Jio Platforms potentially on the horizon.
It is important to note that this NSE IPO will not involve a fresh issue of shares. This means the exchange itself will not receive any proceeds from the offering; instead, it is an offer for sale by existing shareholders.