The National Stock Exchange (NSE), operator of the world’s largest derivatives exchange by trading volume, is reportedly aiming for a valuation of up to Rs 5.26 lakh crore ($55 billion) in its planned initial public offering. During recent meetings with potential investors, the exchange marketed its shares in the range of Rs 2,000 to Rs 2,100 apiece.
IPO Timeline Shifts to September
Originally, NSE had expected approval from the Securities and Exchange Board of India (SEBI) for its draft prospectus by early August. However, this timeline has been pushed back by approximately three weeks. The delay stems from necessary changes to the list of selling shareholders, which now includes SBI Capital Markets, requiring a 21-day period for public feedback on the revised IPO documents.
Consequently, the much-anticipated IPO is now projected to launch in the second half of September.
Global Investor Interest and Valuation Context
NSE has largely completed its global roadshow, engaging with approximately 120 large international investors across major financial hubs including Boston, New York, San Francisco, London, Singapore, and Hong Kong. Prominent firms like BlackRock, Capital Group, GQG Partners, Janus Henderson Group Plc, and Allspring Global Investments were among those who participated in these discussions.
At the upper end of its marketed valuation, NSE would rank as the sixth-largest exchange operator globally by market value, positioning it just behind the London Stock Exchange Group and slightly ahead of Nasdaq. The exchange filed its draft papers in June for an offering composed entirely of secondary share sales, with existing shareholders planning to divest as many as 14.89 crore shares, representing about 6 percent of the company.
A consortium of 20 banks, including Kotak Mahindra Capital, JM Financial, Morgan Stanley, HSBC Holdings, and Citigroup, has been appointed to manage the share sale. It is important to note that the size, valuation, and exact timing of the offering remain subject to change as deliberations continue.