India's NSE eyes Sep 21-week listing after regulator clears IPO, sources say
NSE has been valued at about US$55 billion in the unlisted market
India's National Stock Exchange (NSE) is set to list its shares in the week beginning September 21, following approval from regulators for its initial public offering (IPO), according to sources. The IPO could be one of India's biggest ever, alongside Mukesh Ambani's Jio. NSE has a valuation of around US$55 billion in the unlisted market, placing it among the country's top 10 most valuable companies by market capitalization.
The exchange is a dominant player in India's equity derivatives market, operating the Nifty 50 index, the country's benchmark stock market index. Book-building for the IPO is expected to begin on September 11, with the price band likely announced on September 15. Large prospective investors, including Indian mutual funds, have indicated their willingness to buy shares at approximately 1,800 rupees each, suggesting a valuation of around US$47 billion.
Analysts view NSE's listing as a significant event, potentially boosting the Indian market's interest due to its high market capitalization and expected price-to-earnings ratio of around 35 times. The IPO is being offered for sale by existing shareholders, with no proceeds going to the exchange itself. NSE's listing plan faced regulatory hurdles in the past, including investigations into its facilities and compliance issues, but was cleared after the exchange settled these matters.
Despite recent regulatory restrictions on derivatives trading, India's capital markets remain underpenetrated compared to other major economies.
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