SEBI issues observations on NSE’s IPO draft papers
Observations were issued on August 21; regulator awaits response from the exchange's lead manager
SEBI has released observations on the draft papers submitted by the National Stock Exchange (NSE) for its upcoming initial public offering (IPO). The regulatory body issued its feedback on August 21 and is waiting for a response from the lead managers of the exchange. This comes a day after SEBI Chairman Tuhin Kanta Pandey stated that the regulator was "close" to approving NSE's draft papers.
NSE had filed its draft red herring prospectus (DRHP) with SEBI in June, seeking to sell up to 148.9 million equity shares, constituting approximately 6% of its paid-up capital. The issue will not include any fresh components, with the proceeds allocated to the selling shareholders. The exchange's listing plans have been in the works for years but have faced regulatory obstacles for the past decade, including disputes over co-location and dark fibre.
NSE's IPO progress gained traction after SEBI granted it a no-objection certificate earlier this year. Following this, NSE's board authorized the proposed listing. Last month, the regulator agreed to settle the applications filed by NSE in the co-location and dark fibre matters for ₹1,491.21 crore. The stock is valued at around ₹5 lakh crore in the unlisted market, and the IPO is anticipated to be one of the largest by size, valued at approximately ₹30,000 crore.
The exchange has enlisted 20 book-running lead managers, with Kotak Mahindra Capital serving as the coordinating lead manager among them. Once SEBI concludes its review and approves the draft papers, NSE can move forward with the subsequent stages of the IPO launch.
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