NSE IPO gets SEBI nod, may eye listing by September end

The National Stock Exchange (NSE) has received a regulatory nod from the Securities and Exchange Board of India (SEBI) to proceed with its highly anticipated IPO, which could be the largest listing in the country's history. The exchange had initially filed its IPO papers back in June, and almost a decade after its first attempt, the approval comes after clearing a crucial regulatory hurdle.

The price band for the issue is expected to be announced on September 15, with plans to list the shares in the week starting September 21, according to unnamed sources reported by Reuters.

SEBI's green light, issued on Friday, signals that the path is now clear for the NSE to become the country's biggest-ever IPO, potentially surpassing Hyundai Motor India's Rs 27,870 crore offering from 2024. The unlisted market currently values the exchange at around Rs 5 lakh crore, with the final valuation and funds raised contingent on the price band of the issue.

Rival BSE raised Rs 1,243.43 crore in its public issue back in 2017, which has since appreciated nearly 29 times, making it one of the most lucrative stocks in the market.

The NSE's IPO will be structured as an offer for sale (OFS) of 14.89 crore shares, representing approximately 6% of the exchange's stake. Funds raised through the OFS will be pocketed by selling shareholders and will not be used in the company's business. SBI will offload up to 2.48 crore shares, while MS Strategic (Mauritius) will sell up to 1.6 crore shares. Other major listed entities participating in the sale include Bank of Baroda, General Insurance Company of India, and the New India Assurance Company.

The IPO is anticipated to unlock substantial cash for companies with skyrocketing shares, such as New India Assurance, which has risen over 18% on Friday and gained 34% over just a month. With four IPOs currently slated for the upcoming week, the NSE's listing could significantly impact the volumes and liquidity in the secondary market as India's IPO market continues to heat up due to improved market conditions and a more favorable geopolitical landscape.